Study On Human Capital’s Impacts On Business Performance In Chinese Transnational Corporations

Economic globalization, as an important feature of today’s world economy, has had a significant impact on the global economy. Meanwhile, transnational corporations, as the most important microeconomic participants and a new force in economic globalization, play a pivotal role in this process and promote the development of the world economy. With the knowledge-based economy becoming more and more popular, transnational corporations pay much more attention to the power of knowledge and talent. Furthermore, human capital ie the embodiment of transnational corporations in terms of knowledge and talent, which attract the attention of transnational corporations. Development, management and utilization of human capital will have an important impact on the sustainable and long-term development of transnational corporations.Currently, research on the effects of human capital on business performance is not so much, and research on transnational corporations is even scarcer. In China, the quantitative research on human capital and business performance is still in its infancy stage; foreign scholars’ study is confined to the developed countries’big transnational corporations, while research on developing countries’is inadequate. So the author will do the empirical study.Empirical results show that in all aspects of human capital, for example, average salary of employees and executives, and average education levels of employees have a significant positive impact on multinational business performance, while the proportion of graduate students have a significant negative impact on multinational business performance. Thus, transnational corporations should pay more attention to these aspects in order to ensure the sustained and healthy development of transnational corporations.