Academic journal article Canadian Social Science

The Covariance Structure Model Analysis of the Factors Affecting the Entrepreneur's Human Capital Pricing in Venture Capital1/ANALYSE DES FACTEURS DU MODELE DE LA STRUCTURE DE COVARIANCE AFFECTANT LA FIXATION DU PRIX DU CAPITAL HUMAIN DE L'ENTREPRENEUR DANS L'INVESTISSEMENT-RISQUE

Academic journal article Canadian Social Science

The Covariance Structure Model Analysis of the Factors Affecting the Entrepreneur's Human Capital Pricing in Venture Capital1/ANALYSE DES FACTEURS DU MODELE DE LA STRUCTURE DE COVARIANCE AFFECTANT LA FIXATION DU PRIX DU CAPITAL HUMAIN DE L'ENTREPRENEUR DANS L'INVESTISSEMENT-RISQUE

Article excerpt

Abstract:

This paper carries on the analysis of the factors affecting entrepreneur's human capital pricing in venture capital, focusing on the much-dimensionality characteristic, then establishes a logical and comprehensive theory frame which can reflect all the factors affecting entrepreneur's human capital pricing. Further by using covariance structure model (CSM), we make an empirical analysis of these factors. The result shows, in venture capital the control rights of entrepreneur is the most important factor affecting the entrepreneur's human capital pricing, the scale of enterprise is the least one, with the enterprise management performance in the middle.

Key Words: venture capital, the entrepreneur's human capital pricing, factors, covariance structure model

Résumé: L'article présent, sur la base de l'analyse des facteurs affectant la fixation du prix du capital humain de l'entrepreneur dans l'investissement-risque, a établi pour ce problème multi-dimensions un cadre théorique logique et capable de refléter complètement ces facteurs influants. L'auteur adopte d'ailleurs la méthode analytique du modèle de la structure de covariance (CSM) pour effectuer une étude positiviste sur ces facteurs. Le résultat montre que, dans l'investissement-risque, le pouvoir de contrôle de l'entrepreneur est le premier facteur en jeu, la perfomance de l'entreprise le deuxième et la dimension de l'entreprise le dernier.

Mots-Clés: investissement-risque, fixation du prix du capital humain de l'entrepreneur, facteurs affectants

(ProQuest-CSA LLC: ... denotes formula omitted.)

1. INTRODUCTION

Venture capital is a new-type operational model of capital, is a innovational course of institution, which is the integration of risk money capital and the dishomogeneous human capital of entrepreneur. The essence of venture capital is finance capital converging the human capital, is the perfect-combination of human capital and finance capital. In the whole system of venture capital the entrepreneur s human capital is the rare capital of venture capital. As the central system of two principal-agency relations, the entrepreneur can adjust all the productive ingredients quickly, which leads to the efficiency brought by optimizing the resource distribution far beyond the one brought by the common production. Just as Stephen, the board of American high technology investment list corporation, said: "human is the most important ingredient to establish the high technology industry by making full use of venture capital, among which the entrepreneur's human capital is the key body and soul of all the systems of venture capital, accelerating the risk technology innovate and disperse, boosting venture capital develop, playing a key role."

The value of entrepreneur s human capital in venture capital is highly uncertain, with the heterogeneous characteristic increasing returns. It is these characteristics that determine that the factors affecting entrepreneur's human capital pricing disperse in more arrangements and at more dimensions, forming a huge and complicated cluster. There are some immeasurable latent factors fallowing among these factors. These latent variables may possibly composite some theory conceptions, some research supposition, only can not directly be measured by existent method, but these variables can be explained by some measurable phenomena. In order to let us deeply understand these factors affecting entrepreneur's human capital pricing in venture capital, fully realize to price the entrepreneur's human capital, this paper hackles and trims these factors systematically. Specifically with 150 copies of questionnaires given out to 30 middle-small high technology enterprises and resulting in 78 sets of valid answers, this paper obtains investigative data, further establishes covariance structure model to make an empirical analysis.

2. THE FACTORS AFFECTING THE ENTREPRENEUR'S HUMAN CAPITAL PRICING IN VENTURE CAPITAL

In venture capital how to confirm the price of the entrepreneur's human capital is not simply the equilibrium of factor market, but the complicated course integrating the market choice and governance evaluation under some special restrictive condition. …

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