Decisions Of Our Profits And Cash Flows Of The Public Company Accounting Comparative Analysis

The research on the information content of net income accounting and net operating cash flows and stock price is very important. Firstly, from the history of the accounting theory, net income accounting and net operating cash flows and stock price are the most important concept in accounting systems, it is the foundation that investors carry on the investment decision. Besides, in the accrual basis net income accounting is in particular period operating results, reflecting past, representing companies in the past. While net operating cash flows is in the cash basis, if the cash looks as blood, it is a reflection of the hematopoietic function, it is revealed in the future, represents the future of enterprise. Check whether the enterprise the hematopoietic function (its standard:the cash flow from operating activities is usually positive). Hematopoietic function is strengthened or weakened. If you do not have the hematopoietic function is the result of a loss or growth. Under normal circumstances net operating cash flows is larger than net income accounting. Accounting net income and operating cash flow has always been important to look at a crucial indicator of investment decisions,but the relevance of their respective decision-making and the strength of the correlation between the two, there has been controversy in the academic community, I consider it necessary to China's accounting net income and cash flow from operating activities related to sexual decision-making about issues of empirical analysis, empirical results obtained by convincing conclusions to investors, creditors, management authorities and government agencies to use financial information for rational investment decision-making, management and administration.This paper selects the 2005 to 2009 of 1529 listed companies as samples, the following four aspects were studied.1. Inspction of accounting net income of the decision usefulness;2. Operating cash flow test of the decision usefulness;3. Compare the usefulness between net income accounting and net operating cash flows;4. How do investigation of net income accounting (NIA) and net operating cash flows (NOCF) decision-making relevance in five years the overall trend?Though research, I believe that:1. Accounting net income per share and a positive correlation between price per share that profit with the decision usefulness of account ing;2. Cash flow from operating activities per share and a positive correlation between price per share, that is cash from operating activities flow with the decision usefulness;3. accounting net income and operating cash flow in the investor's decision-making process are associated with the decision, but comparison, decision-making related to accounting net income and stong in operating cash flow;4. Net income accounting of decision-making relevance in five years overall volatility has an upward trend, and net operating cash flows are not necessarily the decision-making relevance.At last, author draw the conclusions, recommendations and limitations of the study in order to study the future direction.