Chinese Listed Companies Earnings Quality Factors

In recent years, because of our country capital market’s rapid development, the issue about accounting information has become key point which the scholars study. The earning is the most important accounting information, the people often pay attention to the earnings how many the company gets, but neglect its quality. It causes wrong decision making and economic loss, therefore it is necessary to research the relationship between the corporate governance structure and the earnings quality. The author believes that although it is significant to evaluate earnings quality’s authenticity, finding the reasons what causes the low quality earnings of listed company and how to avoid arising low quality earnings from the source is more important.This paper which bases on decision-making availability, studies the problems about the relationship between earnings quality and corporate governance by using the principal-agent theory, the information asymmetrical theory and so on.It also takes the theory support from the domestic and foreign related literature and the research technique and the conclusion, unifies our country unique research background, then proposes the supposition, and studies the earnings quality influence separately from the management drove, the holding shareholder, the stockholder’s rights keep in balance, board of directors characteristic several aspects.This issue makes use of income model’s foundation and takes 3 years altogether 2392 listed company as sample company to study the problems between earnings quality and corporate governance by using the connection research’s method and obtains the conclusion that in the big sample’s situation, with the increase of management shareholding, although the quality of earnings has increased but not significantly; chairman and general manager of the more separate the two posts, the higher earnings quality, management control activities have also been reduced earnings; the times of board conference convenes are more, the earnings quality is higher; the large-scale board of directors can provide the multiple perspectives for the policy-making consultation of the enterprise, help the enterprise to obtain the essential resources, the members of board are more and the independent director’s members are more, the earnings quality is higher; moreover, chairman and general manager’s change will cause the earnings quality get lower, finally elaborated this limitation of this paper.