The Park Place Economist


Thanh VuFollow


In recent years, human capital has received a lot of concern from economists. Many studies have been conducted to find out what this capital really is and how it relates to other economic factors. In general, economists believe in the importance of human capital investment and its positive correlation with the productivity of a worker. However, there have not been many research papers on the impact of an individual’s human capital on the efficiency of the organization. Therefore, I would like to conduct research that explores this relationship in a firm. It is undeniable that a president is the key person of a firm because he or she sets the vision and makes important decisions. This research aims to find out how different characteristics of chairmen’s human capital affect the outcomes of companies and to what level. This research project is unique because there have not been any similar ones focusing on Vietnamese firms. Vietnam is chosen for two reasons. First, Vietnam has the highest percentage (97%) of people who rank managers as important or very important to the success of a company which makes it more likely to believe in the existence of a relationship between human capital of the chairmen and performance of firms (Wakerfield et al., 2016). Second, Vietnam is a newly opened market that is receiving increasing attention globally so that this research can be helpful for those who are considering investing in Vietnamese firms.