Human Capital, Management Quality, and Firm Performance

2014 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Lei Kong ◽  
Karthik Krishnan
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Capital Management ◽  
Human Capital Management ◽  
Management Quality

Human Capital, Management Quality, and the Exit Decisions of Entrepreneurial Firms

2016 ◽  
Vol 51 (4) ◽  
pp. 1269-1295 ◽  
Author(s):  
Shan He ◽  
C. Wei Li
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Capital Intensity ◽  
Entrepreneurial Firms ◽  
Capital Management ◽  
Human Capital Management ◽  
Management Quality ◽  
Younger Age ◽  
Incentive Problem ◽  
Exit Decisions

We model the employee incentive problem jointly with a firm’s exit decision. Our model predicts that firms in industries where human capital is important are more likely to go public and use high-powered, stock-based compensation. We also show that the higher the management quality, the more likely a firm is to go public than to be acquired. Regarding life cycle, a firm with high capital intensity and/or high management quality will choose to go public at a younger age.

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