The Research Of The Correlation Between Account Receivable And Profit Quality Of Chinese Listed Companies

On account of the continuously emerged circumstances on accounting fraud, the financing data of profit reporting cannot completely reflect the truth, the validity of those early evaluating systems for profit quality, which structured according to traditional financial index, reduced greatly. Accordingly ,the profit quality of listed corporation has become an important matter of the specialists and the public. This realistic background drives us to study the profit quality problems of listed companies from a new visual angle.At such an environment, the thesis chooses 80 sample listed companies in Shanghai securities business, with there 2005 annual financial reports, by adopting a method by combining formal research with empirical research, through three groups of indexes structured to reflect main characteristics comprehensively of account receivable: the scale of the account receivable,the turnover rate of account receivable,the variance between the increase rate of main business revenue and account receivable, carries on the research to the correlation between account receivable and profit quality. Drew the following three conclusions: (1) the scale of account receivable correlated negatively with profit quality. That means the bigger scale of account receivable is, the smaller possibility of the high profit quality takes place to enterprises; (2) the turnover rate of the account receivable is correlated positively with profit quality. That means the higher turnover rate of account receivable is, the greater possibility of the high profit quality takes place to enterprises; (3) the variance between the increase rate of main business revenue and account receivable correlated positively with the profit quality. That means the higher variance between the increase rate of main business revenue and account receivable is, the greater possibility of the high profit quality takes place to enterprises. On the basic of the research conclusion mentioned above, the thesis structures the evaluating model of profit quality from visual angle of the account receivable, and takes 32 high profit quality listed companies and 37 low profit quality listed companies in Shanghai securities business in 2006 and 2007 to measure the validity of evaluating model by comparatively sufficient verification .The inspection result is satisfied. The inspection result and find have proved the meaning of theory and realistic, of studying to the evaluating problem of profit quality from the visual angle of the account receivable further.