A Study On The Relationship Between Human Capital, Staff Training Fund And Firm Performance

As competition intensifies, human capital investment has an increasing contribution to economic growth. And comprehensive strength of enterprise depends on human capital investment. Human capital plays a very important role in market competition. With the development of economic globalization, China is growing to be the world factory, but Chinese enterprises only achieve a meager profit in the global value chains specialization. Chinese enterprise has to exploit human capital advantages to the full to achieve more benefits in the global value chains specialization. However, the shortage of staff training fund is common in Chinese manufacturing enterprises. The ratio of human capital investment to GDP was only 2.5% in China in 1995, and it was 3.3% in India, 4.1% in Thailand. Under this background, this paper evaluates staff training input-output from the aspect of firm performance. It reflects indirectly the influence of human capital and human capital investment for firm performance with accounting data math module.Using the data of manufacturing companies in Chinese A-share market from 2007 to 2009, it describes basic condition of the sample with descriptive statistic analysis. It reveals the maximum, minimum and the mean of ROA, per capita staff training fund, asset and so on. It also discusses the relationship between per capita staff training fund and firm performance with correlation analysis. With variance analysis, it is found that regions differences in firm performance, per capita return of human capital are significant. Tate-owned enterprises and non-state enterprises are contrasted. A multi linear regression model is established to as a tool to study influence of human capital and human capital investment for firm performance.It is founds that per capita human capital income has a positive effect on firm performance. It means that the value that human capital created is much higher than the companies pay, so the human capital can bring additional benefit to firms. The per capita training funds have a significant positive effect on firm performance. Moreover, this paper shows that assets scale, complexity of technology, proportion of state ownership and asset-liability ratio have a significant effect on per capita staff training fund. Regions Differences in firm performance and per capita return of human capital are significant. And the company in the east has a better firm performance and per capita return of human capital that the company in the west.