On Income Quality Appraisement Of Listed Company

Income level and quality of the listed company are essential factors for decision making to all interest-related parties. It is not precise enough to describe income quality just by the qualitative method. Thus, the theoretical circle has been searching for a scientific quantitative method to appraise income quality. Structural equation method has the advantage in disclosing the dependent relationship of multi-factor paths, precisely making a quantitative description of the relationship between obvious and latent variables. This dissertation aims to solve the problem that describe income quality quatantively under the principle of structure equation, in order to perfect the appraisement and other theories about accounting information quality, interpret the income quality information of the listed companies for the interest related, improve the decision pertinence of accounting information, and offer methodology tools to managers for scientific decision-making.Since there is no common understanding of the essence of income quality theory, the dissertation theoretically defines the related concepts of income quality and establish the concept structure of income quality, pointing out all these above is necessery for defining research concepts and methods. The study reestablishes income qulity and it's attributes, proposing that the core concept is income quality, which is the ability of income indexes to explain the company value. Income quality should be disclosed qualitatively and quantitatively. It can be reflected by income reliability, cash indemnification, duration, growth and safety on the qualitative side and by income profitability and quantum on the quantitative side. The quantitative attribute is a creation of the dissertation, and the other attributes will be stated by the structure of company government. The study demonstrates the effect to income quality causing by the controlled attributes.In order to quantitatively appraise the income quality by it's attributes, it's necessary demonstrate whether the income quality attributes can be measured and how to measure them. The study logically analysises the attributes of income quality, demonstrates factors of eache attributes, proves the reliability of quantified results by empirical research, and completes the quantitative description for every attribute of income quality. The dissertation firstly proves the reliability of the income quality to be one of its characteristics, which is measured by the mutant weight coefficient method. Secondly, the study tests three theory models of DKW by utilizing panel data, proves that the cash indemnificatory attribute of income quality can be measured, revises the models according to profession characteristics, demonstrates the cash flow abundant degree to be one of the important characteristics of the income quality, and establishes the cash indemnificatory measuring index model utilizing the mutant weight method. Thirdly, as the durative ability of income is generally reflected in the durative ability of the income quality, the durative index measuring model of income quality proposed for the manufacturing industry measures the quality characteristics from the angle of the factor which affects the durative source. Fourthly, the study proves that profitability aim of investment determines profitability characteristics to be the most important attributes, and constructs the profitability index measuring model of income quality for manufacturing industry. Finally, the research explores three other important attributes, growth, safety and quantum, and establishes the corresponding attribute index model of income quality.Given that each selected quantitative index of income quality attribute can only measure item by item from a single side, it's necessary to prove whether each index is needed to comprehensively measure the income quality and to identify the relationship between single measurement and comprehensive measurement. Therefore, after respectively measuring each income quality attribute, the dissertation further researches into the comprehensive measurement of the income quality with means of factor analysis The results demonstrates that it is necessary to predigest each single measuring index when utilizing all the attributes to measure income quality, and confirms the relationship between the attributes and the corresponding income quality. By combining the methods of logical analysis and demonstration analysis, the dissertation analyzes the influence of company government on income quality, states the relationship between the main factors of the company governance structure and income quality, and proves the hypothesis raised from the logical analysis by means of regressing the influence of company governance structure on income quality. The results proves that the share right structure and its balance relationship are closely related to the income quality, while there is no significant relationship between directorate characteristics, manager incentive and income quality.Based on factor analysis and path dependence analysis of income quality, the dissertation establishes the concept model of income quality denotation and initial path model of structure equation. Using the data of listed companies in manufacturing industry, the dissertation sets the parameters and undertakes the estimation tests for the initial model. The dissertation also theoretically interprets the output of the initial model, tests the fitness degree of the initial model, and then revises the model, establishes the finial path model, and tests the hypothesis raised in the process of the research. The empirical tests in manufactory industry demonstrates the value of the structure equation modle established in this dissertation.The dissertation further proposes some policies to improve income quality according to the measuring results of income quality for the manufacturing industry.