On The Analysis And Evaluation Of Listed Companies' Earnings Quality

Since the late 1990's,many financial frauds of listed companies have appeared in worldwide capital markets,which makes stakeholders come to realize the importance of the earnings quality.Meanwhile,the academic,both at home and abroad,have paid more and more attention to the issues of earnings quality.However,it is a pity that there are no uniform recognition on how the concept of earnings quality came into being and how to assess them.Thus,I choose the analysis and evaluation of listed companies' earnings quality as the research object of my dissertation,intending to enrich the research on earnings quality and benefit for stakeholders.The dissertation is divided into five sections.The first section is an exordium, which firstly introduces the background of this research and reviews the related research at home and abroad,and then explains the importance of earnings quality to the healthy development of the capital markets from the perspective of information economics.Finally it outlines the framework of the dissertation.The second section defines the concept of earnings quality and its characteristics,and then puts forward the framework of the analysis and evaluation of earnings quality in this dissertation. The third section analyses and evaluates the facticity of the earnings.Firstly,it analyses the influencing factors of the facticity,and then introduces the method of how to analyze the facitity of the earnings.Finally,it reveals several common means of profit manipulation and explains how to identify and adjust those profit manipulation.The fourth section analyses and evaluates the intrinsic quality of earnings by the means of both qualitative analysis and quantitative analysis.The part of qualitative analysis includes analysis of the social environment,industry and the competitive strategy of the corporation.As for the quantitative analysis,I set up a series of separate indexes from four aspects of the intrinsic qualitative characteristics of earnings,and then provide the comprehensive index by using principal component analysis with a sample of automotive and motorcycle industry for empirical analysis. The last section summarizes up research conclusions and limits of the dissertation.