An Empirical Research On Evaluating The Income Quality Of Manufacturing Listed Companies In Northeast

Company's earning capacity affects company's normal appraisal , value, the stock price, and so on from the social public. Therefore, the corporate management authority commonly used each method to beautify their financial reports. This has called the public's high attention to the income quality. The so-called income quality, is refers to the credible degree of the financial report income or the cash degree of protection and the ability to obtain the income continuously. In the ordinary circumstances, the relevance between the report income and the company achievement may reflect the company income quality. If the report income can truthfully reflect the company achievement, then the income quality is good; but in contrast if the report income cannot truthfully reflect the company achievement, then thought the income quality is not good.Our country's accountant criterion and company's governing structure are not be perfect. In addition many corporate managements level always enjoys to the earnings operation, disregards the income quality, and harms investor's benefit. These has caused the general investors more carefully to make decisions to invest, to notice the corporate finance report substituting only to pause on the superficial income. Now the public has started to put more eyes on the income quality analysis. so how to distinguish northeast three provinces'the manufacturing industries to go on the market profound and abstruse principles of the corporate finance report form, enhances investor's vigilance and the distinction ability, to appraise company's income quality. It, no doubt, is an important question which the theory researcher is urgent to solve.The all samples of this article was selected from the 2005 year-end financial report of the 63 listed company in the northeast three provinces'manufacturing industry .I selected 18 financial indexes, and used principal components analytic method to analysis 1,134 to identify the income quality.The accountant reports promulgated by the listed company regularly have more and more become an important channel that the general public and the government understand the enterprise finance condition and the management achievement, simultaneously also become a basis that the general investors judge the enterprise's ability to make a profit and develop. The income information also is most paid attention, and the unreliable income information is also the biggest anxiety when the investors make decisions and policies. In the practical life, for achieving certain goals the business management level deliberately beautify the financial report, carries on the profit operation through each means, which causes the enormous harm to the society. This kind of phenomenon displays the outstandingly in northeast some old enterprises, in our country northeast area, partial large and middle scale enterprises, because of the establishment time comparatively and the historical cloth wrapper, frequently change figures of reports to achieve some special goals. Any finance fraud can cause the country to suffer losses, and enterprise to facewith finance crisis. As key industry developing the northeast old industrial, the manufacturing industry enterprise ,especially the listed enterprise ,shoulders more duties promoting northeast China, moreover, he manufacturing industry enterprise provides the development pattern to the brothers enterprise. In the certain degree, it is playing the model role. Therefore, it is necessary to distinguish finance report of the listed company of northeast and enhance investors'ability of vigilance and the distinction.Enterprise's income quality was reflected by the financial report and a series of financial indexes, but the sole index only can reflect a certain aspect of the enterprise management, so more objective and reasonable synthesis appraisal to some period financial condition are needed. Comparing the related items in the financial report, and translating the absolute value into the relative value, we explained the correlation of all items in the financial report, and will make certain explanations and the appraisal, then will analyze and compare the similar company's numeral. Nimbly and reasonably using each finance ratio is advantageous to research and analyze the financial report, so we can realize enterprise's real income quality. using SPSS statistics software, we can standardize the financial ratios, obtain the principal components through the load coefficient analysis, obtain the synthesis score of various enterprises, and finally according to the above scores, compare and analyze enterprise's income quality. So the public can objectively regard the listed company's income quality, reasonably makes the relatively correct decision-making using the enterprise financial report.Through standardized processing 18 financial ratios, the author eliminates the different dimension, finally arrange the enterprise's score from high to low, and divide three levels. In first level, enterprise's synthesis appraisal index is high, which explain to go on the credible degree or the cash degree of the financial report in this level, as well as t the ability to obtain the income .namely the income quality in this level is higher. Therefore, the income, the growth, the security and fluid of this level enterprise without doubt are best. In addition, in the third level, 75% company is the ST stock; the synthesis appraisal index is negative, the income quality is low. The financial report is possibly not to be able truthfully to reflect the company the achievement. So the investor must pay more attention to the income quality when they make investment decision.The income quality is decided by the income authenticity and endurance. As a whole, the listed company's income quality is good. The income data has the reliability and the relevance, mostly can truthfully reflect the company the achievement. Today, the accountant laws and regulations is perfect little by little, the capital market is unceasingly mature and the investor is more and more sensible. We can believe that the listed company's income quality surely change better.