Employee Education Funds、Innovation Activities And Enterprise Performance

In the process of economic globalization, products and markets competition is becoming increasingly fierce and unpredicable. The development of economy is being driven by innovation due to the dramatic changes happening every second in contemporary era. Intangible capital such as knowledge is gradually replacing traditional factors of production, knowledge system is constantly enriching and spilling over, and the flow of talent continues to increase. Under this circumstances, it is getting harder and harder for the enterprises to get profits through expertise and technology barriers. Human is the subject of creating knowledge, the role that human capital plays in business is becoming more important than ever. Human capital is becoming more and more important for corporates to maintain sustainable competitive advantage because its own special attributes and human capital development and management surrounding human has become a hot topic in the enterprise capital research as well as open innovation research. Therefore, how to make the best use of human capital and how to maintain competitive advantage and enhance the corporate value and performance have become an urgent issue worthy to do further research.The accumulation of human capital needs different kinds of investment according to human capital theory, working training is the most important way for a company to invest in its human capital. In this paper, we study the effect of enterprises’human capital investment measured by its staff education funds on its performance and what kind of role innovation plays between them. We usd the annaul report data of A-share listed companies in Shanghai and Shenzhen securities trading exchange from 2011 to 2014 to cunduct this study.This article used a company’s staff education funds as the masurement of its human capital input, used the spending on research and development of a company to measure its innovation and used Tbinq as the measurement of a company’s performance as its perspectiveness and indenpence of artificial operation. In this paper, we build models to verify that whether a company’s input to its employee training can enhance its performance and whether innovation plays a role of intermediary between them refering to the casual steps approach raised by Baron and Kenny in 1986.The sutdy can be divided into two Parts. In the first part, relevant theories and researches are reviewed. In the seeond part reports the processes and results of the empirical sutdy.The research process of this paper are mainly embodied as following:First of all, basing on the review of human capital theory and existing researches about enterprise human capital investment and corporate value, enterprise human capital input and its creative activities, the paper did a qualitative analysis to the relationship between staff education funds and corporate value. Secondly, builded models for emprical analysis according to qualitative analysis and carrid out regression analysis on them. The results of the empirical analysis verified the qualitative analysis before, showing that the enterprise education input to the employee can promote its innovation activities and further improve its performance. To test the robustness of the results, the article used ROA and ROE as dependent variables to measure a company’s performance and established new models to regress, and in order to solve the problem of endogenous, this aritcle used previous staff education funds to replace the current ones as explanatory variables to establish the regression models. All the inspection results are consistent with the conclusions that we got before. Finally, according to the theoretical analysis and the empirical conclusions, the paper puts forward some suggestions on the management of enterprise human capital to search for possible way promoting the corporate value.The main conclusions drawn from the research are as follows:firltly, company tends to invest more in working training of it’s employees tends to have higher performance, it means that human capital investment has a significantly positive impact on the corporate performance, and this conclusion is consistent with the point of human capital theory; secondly, company tends to invest more in working training of it’s employees tends to invest more in its R&D activities, which means that human capital investment has a significantly positive impact on the corporate innovation; thirdly, when introducing innovation as acontrol variable to the emprical model, the effect of companies’staff education funds on their performance reduced. This suggests that innovation serves as a mediating role between human capital investment and corporate performance, in the same words, nnovation acts as the intermediary variable between human capital investment and companies’performance. In a word, Companies which pay more attention to their employees and invest more in staff training can accumulate more human capital which can drive innovation and will get better performance.The main innovative points of this dissertation is that this research not only focused on what kind of effect a company’s staff education funds has on its performance, but also try to find out the mechanism of this effect from the perspective of innovation. In order to explore the mediating role of innovation, this paper refers to the casual steps approach in the psychological area raised by Baron and Kenny in 1986. This article has analysed the relationship between human capital investment, innovation and performance of a company, and there has been no similar research yet.There are three aspects of contribution of this thesis. Firstly, the conclusion of emprical analysis verified the famous opinion of human capital, human capital investment can drive economic development and it’s the most valuable kind of investment. Secondly, The growth of Chinese economic continue to slacken recently because the defects of its traditional economical mode, under the circumstances, the delevelopment of economic of China calling out innovation, The conclusion of this article justified that investment to human capital can promote innovation, we can see that advocating enterprise human capital investment makes more sense. Thirdly, the paper provides a way to improve the ability of creativity and to maintain competitive advantage for companies.