Electronic Listing Of Company Earnings Quality Analysis

Since the foundation of Shanghai and Shenzhen Securities Exchange Market in the early 90s, China' securities market had already experienced a development of more than ten years. But comparing with those mature ones, such as American and Japanese etc., our market is still at the preliminary stage and of special features, the serious phenomenon of the manipulation of the profits made by the listed companies, for instance, which shows China's market need further development and perfection. Profit is the corn conception in accounting, as well as the most important input related to investors, bonders and so on. Traditional analysis on the capacity of making profits only focuses on quantity not quality, so it is not complete. Now, the new concept illustrate on the quality with the following four features: 1. reality; 2. security on cash; 3. stable increase; 4. security. The author thinks that there are many factors influencing the quality of income, both external and internal. The evaluation of the company's quality of income, at present, is based on the some financial index. There is no complete and systematic index. This paper analyzes the influential factors on the quality of accounting income, then combining following the indexes as the balance sheet, profit sheet, and cash flow sheet, the factors indicating the quality of income of an enterprise, to analyze and evaluate the listed companies of electronic categories with the method of factor analysis. The thesis divided by four parts. Chapter one, analyze the definition quality income and state the quality income's characteristic. Chapters two, analyze the influential factors quality of income. Chapter three, use financial index to analyze and evaluate the quality of income. Chapters four, use factor analysis to analyze and evaluate the listed companies of electronic categories. The characteristic of this thesis: 1. To analyze the quality of income in special industry (such as the listed companies of electronic categories). 2. Use factor analysis in econometrics to analyze the quality income of the listed companies of electronic categories systematically. And get the result: the average point is 0.1876 in 2002, 1.1789 in 2003 and 0.6363 in 2004, the point is bigger and the company's quality of is better.