Research On Earnings Quality Of Chinese Listed Companies

Earnings is not only an important concept on accounting but also the informationthat draws most attention from people who use accounting information especiallyfrom investors. At present, people who use accounting information evaluate the listedcompanies' performance usually by ratio of net asset earnings, earnings per share.These ratios are based on accounting income .Earnings quality is not quite aware bypublic when those traditional indexes are used . Actually ,it is an one-side view toattach little importance to earnings quality when the listed companies' performance isevaluated. It not only induces many listed companies to control their book earningsbut also cannot provide effective information for scientific decision-making .Thewriter holds that we should attach greater importance to earnings quality besidesprevious indexes in order to evaluate the listed companies' performance in greaterextent . In the first part , the writer reviews achievement of earnings quality inlandand abroad ,introduces the research background, the research target, the researchcontent and methods of this paper .In the second chapter ,the writer presents theconcept and characters of earnings quality ,analyzes some factors influencingearnings quality of the listed companies. In the third chapter, based on achievement onanalysis of earnings quality inland and abroad concerned, the writer analyzes theappraising methods of the listed companies' earnings quality. The writer holds thatwe should analyze earnings quality at quantitative and qualitative aspects. At theaspect of quantitative , firstly , the writer makes single index appraising systemincluding 18 indexes appraising the listed companies' earnings quality .Secondly , thewriter makes a comprehensive index that can be used to rank. In the end , the writermakes the method of two steps and analyzes earnings quality of some listedcompanies using it. In the forth chapter , The writer analyzes earnings quality of thelisted companies in ShangHai Stock Market, in 2004.The last part of this paper, thewriter summarizes the important opinions ,puts forward the limitations of the paperand makes out the next step.