Study On Building And Applying Chinese Financial Reporting Quality Evaluation Index System

Because of the widespread information asymmetry and uncertainty in the modern economic society, it encourages people to acquire real and reliable information to make decisions. Regarded as a comprehensive document of representing financial statements, performance results and cash flows, financial reports with high quality have great significance to their users. The format of financial reports from different enterprises is basically the same, but their contents are distinct, especially their qualities are not in the same level. The users make decisions based on them, so whether their information is reliable and relative has become a concerned issue. It is necessary to evaluate financial reporting quality.Many people have carried out researches on financial reporting quality assessment from different perspectives, such as earnings quality, one characteristic or the relationship between two characteristics of financial reporting quality and disclosure quality. Because most of them are qualitative researches, it lacks an applicable, quantitative and comprehensive financial reporting quality evaluation index system. The author brings forward the theoretical framework of financial reporting quality assessment and carries out quantitative researches.This thesis can be divided into five parts:Firstly, it clears out the motive and significance of financial reporting quality assessment. The results of assessment will make it possible to compare financial reporting quality between companies, let investors make decisions in a better way, have financial reports and accounting standards develop towards high quality and get supervisors work in a more efficient way.Secondly, it defines the concepts of financial reports, financial reporting quality and financial reporting quality assessment, analyzes subjects from the theoretical framework of financial reporting quality assessment, which includes demanders, executors and supervisors, and establishes the objective of financial reporting quality assessment. Thirdly, it discusses a comprehensive and five single evaluation standards of financial reporting quality—reliability, relevance, timeliness, comparability and transparency. It also designs their index systems and determines their weights to build financial reporting quality evaluation index system.Fourthly, it takes financial reporting quality evaluation index system into practical use based on listed companies'information and data and makes an interpretation to the results.At last, it comes up with the limitations of this thesis and determines further issues to study, which are improving the evaluation standards of financial reporting quality and financial reporting quality evaluation index system and enlarging the spectrum of samples to apply and examine the index system in a better way.