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A Study On The Evaluating System Of Earnings Quality Of Listed Companies In China

Posted on:2008-02-22Degree:MasterType:Thesis
Country:ChinaCandidate:Y Q ChenFull Text:PDF
GTID:2189360215993517Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
During the recent years, the incidents that listed companies make the fake are ofcommon occurrence and its ways and means manifold day by day. However, theinvesting public and other information users would like to take the net profit and theevaluating indexes based on the net profit to evaluate the earnings capability of listedcompany, which are the checking results under the accrual basis and easy to bemanipulated. Considering this matter, the users of financial information are demandinggreater assurance about the quality of earnings. To evaluate the earnings quality andprotect the interest of the investors and make the securities business develop healthily,are becoming an important topic and discussed by accounting theory field.Considering these factors, the paper tries to set up a comprehensive and practicalevaluating system of listed company's earnings quality. On the basis of finance andmodern management science, the paper chooses a series of financial indexes whichreflect listed company's earnings quality and filter a series of financial indexes usingthe methods including cluster analysis and non-parametric test in mathematicalstatistics. The paper takes into account comprehensive and independent characteristicsand makes use of the method of principal component analysis to determine the indexweight value, which has more objectivity and consistency comparing to the subjectiveweighting method.Based on it, the author sets up a new evaluating system of listed company'searnings quality through demonstration analysis in the 2005 finance data of listedcompanies of IT industry. At the same time, the author testifies the validity and practicability of the evaluating system of sample listed company's earnings qualityand makes the further analysis of the impact of the qualitative indexes on the earningsquality after contrasting evaluation results and market profit rate as well as the netassets earnings ratio of stylebook companies.
Keywords/Search Tags:Listed company, Earnings quality, Cluster analysis, Principal component analysis, Evaluating system
PDF Full Text Request
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