The Relativity Analysis Of Earnings Quality And Conservatism Principle Of Listed Company In China

The earnings quality means the relativity of surplus information to the investors' decision, viz. either the current or the former surplus estimates the ability of the intending cash flow. The earnings quality has already gotten the more and more extensive recognition, when it becomes the important means that the investors, creditors and management department...etc. understand the whole status of listed company. The conservatism principle is one of the important accountancy check principles. It calls the stability principle or the conservatism again, and it requests the accountants to keep the cautious attitude for the uncertain factors during the operating activities. For the enterprise owner, overestimating the earnings and properties far is more dangerous than underrating the earnings and properties. Generally, adopting conservative accounting policy brings the enterprise the small risk and the high earnings quality to compare to adopt the optimism. Certainly, it is unequal to say that the accounting policy is more conservative ,the earnings quality will be more high. Lifting the excessive reserve will lead the earnings quality to descend. Therefore, this thesis aims at studying the present status of the earnings quality and the conservative degrees oflisted company in China and their relativity.The main contents of this thesis are as follows:In chapter 1, the research problem is put forward, the domestic and overseas research result is reviewed in this field, and the basic contents of this article are introduced.In chapter 2, the basic theories of the earnings quality and conservatism principle are introduced, and their connection is qualitatively analyzed.In chapter 3, the listed company samples of six profession are selected. The present status of their conservative degree is calculated and analyzed in detail, and they are analyzed contrastively.In chapter 4, the present status of earnings quality of six profession iscalculated and analyzed in detail, and they are analyzed contrastively.In chapter 5, the relativity of the earnings quality and conservative degree of of six profession listed company is analyzed, and according to the regression models, the reasonable conservative degree of each profession carry is researched. The conclusion part gives the analytical results of demonstration and the interrelated suggestions, and the limit and further research speculation of this thesis are put forward.