The Study Of Internal Financial Factors Of Chinese Listed Companies' Earnings Quality

Earnings Quality can be defined as the decision-making usefulness for information users. Many factors affect the assessment of earnings quality. Earnings quality need to meet the authenticity, profitability, sustainability, growth, so the factors that affect the quality can be analyzed from four aspects. In China, there are some defects in the accounting standard and some lags in the control. At the same time, there are loopholes in laws and regulations. The profitability of the enterprise may be subject to external economic environment. In addition, with the development of social division of labor, ownership structure affects the earnings quality increasingly.I chose the financial data of listed companies in China of 2007-2009 as the research sample. I focused on the effect of internal financial factors for the quality of the earnings. I studied which types of internal financial factors had greater impact. Then I proposed some measures to improve the quality of earnings.