Research On Earning's Quality Of Real Estate Industry Listed Company

These years many financial frauds of listed companies appear in domestic and overseas security. All of those make investors become more and more serious and suspicious while making invest decisions. They pay attention to not only the number of earnings on the paper, but also the analysis of earnings' quality. As a pillar industry of the national economy, the real estate industry has an important influence on the national economy and the development of the people's livelihood. As the elements of the real estate industry , the real estate business wheather can develop healthily and steadily ,which determins a sustained development of entire real estate industry. Based on the above-mentioned facts, the paper analyzes and studies the business earnings'qualiy of real estate industry.The paper adopts normative research and empirical study. Firstly, the paper makes a theoretical description from the basic connotion , the influencing factors of earnings'quality, and how to judge the quality of enterprises' profits, good or bad , through the financial statements . In the empirical analysis, the paper constructs a comprehensive evaluation model of earnings'quality from four dimensions including earnings'continuance, growth of earnings , cash-ensurence and profitability , which are the four core elements of earning's quality. According to the statistical analysis of real estate listed companies'data from the year 2006 to 2007, the results show that there is a wide gap of earning's quality between real estate listed company. Many companies' quality of earnings is very poor and needs to improve. At last, the paper puts forward a series of countermeasures and suggestion on how to improve the earnings'quality of listed companies from two sides.