Research On The Earnings Quality Of Listed Companies On The Basis Of Five Manufacture Industries

With the rapid development for the recent20years, the Chinese Stock Market has alreadybeen a vital important new-born power in the global capital market. After all, this new-bornpower still stays at the preliminary step, can’t avoid some shortages. One of the problems is thatthere is doubt whether the listed companies have set up a scientific evaluate-system. Evaluatinga listed company or a stock plate depends on the performance or earning quality? Otherwisedepending on integrated relationship, which sounds much more reasonable.In order to research about the investor’s objective judgment, the listed company’sperformance and the earning quality, as well as the correlation between the two issues, theauthor chooses five manufacturing listed companies as samples to analyze the performance andearning quality. In this article, the author regards the sales net interest rate, JROA and ROE asthe factors to value the performance of the list companies, and the Operating Cash Flow toOperating Profit Ratio, ROE Operating Ratio as the factors to value the earning quality,meanwhile analyzes the performance and earning quality about the five manufacturing listedcompanies, especially research the correlations.Comparing the weighted sales net interest rates, the total weighted JROA and the weightedROE during2005－2009, we can find out the vertical and lateral correlation about theperformance of the five manufacturing listed companies and the wholesample companies, while comparing the Operating Cash Flow to Operating Profit Ratio andROE Operating Ratio, we can find out the vertical and lateral correlation about the earningquality of those companies. More importantly, the author analyzes the correlations forresearching the relationship between the performance and earning quality of the fivemanufacture industries and the whole sample companies during the five years. The author hopesthat the readers could compare the performance together with the earning quality, in order tojudge the listed companies much more reasonably. Mastering a comparing method and acompleted system, the readers and investors can analyze the listed companies’ performance orthe earning quality accurately, and eventually improve the stock market.