The Evaluating System Of Profit Quality Of Chinese Listed Companies

The incidents that listed companies make the fake are of common occurrence, the financial report information quality of listed companies is troubling. Net profit and the evaluating indicators based on the net profit are regarded as important indexes of appraising the profit ability of listed companies, It has received the masses of financial report users' favor, but because of the accrual basis, the net profit is very easy to be controlled artificially. So the thesis attempts to set up an evaluating system of our country's listed companies to appraise the profit quality of them.The thesis introduces some kinds of views of definition of profit quality in this theory field, based on this, it gives us a comprehensive definition of the profit quality, then analyses the authenticity of the profit in terms of forming of the profit, the stability and continuation of the profit in terms of composition of the profit, the ability to obtain cash in terms of outcome of the profit. Then it designs the corresponding indexes. The thesis chooses a typical case to verify the validity of the indexes designed in the article. Finally, the thesis sets up the model of profit quality evaluation of listed companies.In the part of demonstration, the thesis chooses 40 sample listed companies in Shanghai andShenzhen securities business.With these 2000--2002 annual financial reports of the 40 listedcompanies, it obtains the proportion of the indexes by the means of factor analysis.Finally,it ranks the profit quality of the 40 listed companies, analyses the reason the profit quality changes, and verifies the evaluation model by demonstration.Only on the basis of the authenticity of profit,the performance evaluation of listed companies can reflect the truth.Now the performance evaluation of listed companies is set up on the basis of "authenticity of profit",if the profit of listed companies is inveracious,we can't imagine what the performance will be.The main contribution of this thesis is to put forward the important meaning of evaluating the profit quality of listed companies, attempt to set up an evaluating system of listed companies' profit quality, and verify the evaluation model by means of demonstration, put forward some corresponding policy recommendations.