The Research On The Financial Viability Of The Enterprise's Investment In Human Capital

With the acceleration of the process of economic globalization, China's enterprises are faced with more and more intense global competition. In this stage, the core of the competition has been to the human resource not the material resource. If the Enterprises want to make progress, they must attach importance to the investment in human capital. According to the research results, the theory of the enterprise's investment in human capital is lack. The enterprise's investment in human capital has its own characteristics. Now the accumulation of the human resource in our country is mainly relying on the country or the single person. The company does not take an important part to investing in human resources. This situation has a bad impact on the development of the enterprise. But through the research, we can see most scholars take the macro-standing view to study the relationship between the human capital and the economic development or take the perspective of micro-analysis of individual human capital investment behavior. Few scholars analyze the human capital investment from the enterprise's position, so the enterprises have few theories on the human capital investment to guide the practice.This paper systematically analyses the characteristics of the enterprise's investment in the human capital. By analyzing the characteristics, it designs many methods such as matrix prediction method, test group prediction method etc. to get the data about the cost and gain of the Enterprise's human capital investment. It also puts two factors include the risk of resignation and the human capital depreciation into the Becker's model. The revised model will be close to the enterprise's actual practice and provide effective guidance.This paper fist analyzes the background of the research, putting forward the theory and practical significance and explaining the content and research ideas. Then it observes the current state and progress of research on investment in human capital in native and broad. It points out the shortcomings of the theory research.In the second chapter, it introduces the basic conceptions about the enterprise's investment in human capital. It includes the definition of the enterprise's investment in human capital, the content of it and the purpose of it. It systematically sets forth the major issues involved in the human capital investment of the enterprise. In the third chapter, it analyses the characteristics of the enterprise's investment in human capital. It also analyses the features of the gain of the investment in human capital and the risks of the investment. The third chapter is the basic of the last two chapters. Because of its characteristics, the investment in human capital is different from the investment in material resources. So we cannot just take the decision model of the investment in material resources as the decision model of human capital simply.In the forth chapter, it provides matrix prediction method to get the data about the cost of the investment of the human capital. It also comes up with the test group method to predict the gain of the investment properly.In the fifth chapter, it puts the risk of resignation and the human capital depreciation into the Becker's model according to the practice of the enterprise. It will get the correct choice with the revised model.We will get these results through this research:(1)It designs a set of scientific cash flow prediction method on investment in human capital. The enterprise can select an appropriate method to predict the gain of the investment in human capital according to different situations. It also analyzes the intangible gains which the company usually neglects, so the company can have a comprehensive analysis of the gains producing by the investment in human capital.(2)It designs a matrix prediction method to get the cost data of the investment. The investment of the human capital in company has many cost items. Using this method can predict the cost items comprehensively to avoid understating or overstating.(3)It designs a prediction model of economic effects about the investment of human capital. The revised Becker's model not only has two basic factors which are cost and gain also has other two factors which are the risk of resignation and the human capital depreciation. The revised model can provide the effective guidance to the enterprise. The enterprise can make a correct choice by using this revised model. The enterprise can also calculate the cost and gain correctly by it. It can help the company to make a strategic decision and avoid taking a short term conduct.