Firm-specific human capital is the main source of core competence, which has similar character with physical capital. Firm-specific human capital investment is the main way to improve the stock of human capital and thus enhance the core competitiveness of enterprises. However, at the same time the shortage of business investment in specific human capital is also very serious, why so important resources are not able to attract investors? This article will analyze this issue. Because the firm-specific human capital investment faces great uncertainty, this paper introduces the real option theory to analyze the shortage problem of firm-specific investment in human capital. Real option theory of human capital take into account the value of flexibility to value human capital, which changes both of the investors of the decision.The increase of one party's option value can raise the implementation possibility of the options. According to the characteristics of specific human capital option, the option exercising of one party would be to reduce other's income, so one option gains as the cost of the other party, resulting in the loss of the other party. In terms of maximizing its own interests, the aim to reduce the value of the other's options has resulted in the shortage of specific human capital investment. According to B-S that is financial option pricing formula, we get its evolution as a human capital option pricing formula, In light of the impact of option value caused by various factors in the formula, as well as analysis of the relationship between lack of option value and investment, we can find a solution to the problem of insufficient investment. |