Human Capital Financing Problem

In the era of knowledge economy, the role of human capital is increasinglyprominent, and becoming an important capital of the enterprise. It causes traditionalfinancial management which just can “see things but no person”, become "poverty".Then, human capital financial theory arises at the historic moment. In recent years, thediscussion about financing difficulties of small and medium-sized enterprises (SMEs)has broken out. The author realizes that the deep reason of financing difficulties is thatthe human capital can’t let investor--material capital owner convinced, so that thehuman capital financing is the main problem of the enterprise financing. Based on theabove background, this paper selects the starting point of the human capital financial--human capital financing for research.This article analyzes and reviews previous studies, then chooses to abandon orinherit these views. This article bases on contract theory, principal-agent paradoxtheory, corporate governance theory, human capital property theory, game theory andso on, and analyzes this financial activities and the resulting financial relationship.The human capital financing activities of the research is mainly about how to financehuman capital with low cost and high yield, in order to form the human capitalpotential energy, adjustment the capital structure which contains human capital,analyze the human capital leverage’s income and risk, control financial activities, etc.The study about human capital financial relationship is beneficial to analyze theefficiency of transformation from the human capital potential energy to the humancapital kinetic energy, and then design financial relationship which is conductive tocorporate performance.The main points are as follows:1. In this paper, according to the different methods of human capital financing,human capital Is divided into creditor’s rights of human capital and equity humancapital. The author defines the basic theory of human capital financing, such as:assumption objectives, characteristics, mode of financing, financing channels, typesof financing, etc. 2. Restate the human capital structure. The author believes that traditionalcapital structure is not suited to the current situation. Using the control theory andconstructing model prove the existence of the best capital structure.3. About the concrete implementation of human capital financing activities, theauthor designs a process: predict, cost analysis, finance by classification, control andevaluation of financing, dynamic feedback the result. In this process, human capitalfinancial leverage is constructed, which is based on that human capital become equitycapital. Design evaluation index to evaluate the financing result.4. From the perspective of human capital，the author analyzes the financialrelationship between stakeholders and the human capital, and adjusts therelationship,in order to improve the efficiency of the transformation from humancapital potential energy to human capital kinetic energy. The main relationshipadjustment Include: design “the internalization of the external market pricing” methodto determine human capital shares; through the revelation of the relational contracttheory, the author proposes that the enterprises and human capital owners shouldmaintain a good cooperative relations with each other; require human capital ownersto achieve teamwork by integration effect; recommend enterprises to use studentpractice as a kind of human capital financing, because it can realize win-win; thehuman capital and physical capital owners should establish a cooperative game offinancial relationships; financial relationship adjustment also include relationshipbetween human capital owners and shareholders, creditors, government, etc.5. Hope that the support system of human capital financing will be establishedas soon as possible. With a deeply study, look forward to the appearance of“people-oriented financial management”.Human capital is a new research area. This article discusses issues related tohuman capital financing, and want to be able to enrich the theory and Inspire futuregenerations to study in this area.