The Empirical Study Of Management Ability And Quality Of The Surplus

In the current external reporting system，the balance sheet, income statement andcash flow are still the main source of information for the outside investors to judge theenterprises’business conditions, coupled with other statements that constitute aheterogeneous repository.Accounting earnings, as one of the indicators intuitively expressed theenterprises the operating results, has been widely recognized. Based on large amountsof information, users can use surplus as the primary resources. In fact, theuser(whether investors or regulatory agencies) rely on surplus is more than any othercomprehensive performance indicators . In this case，the research for the influence ofearnings quality is very important. There are a large number of domestic and foreignliterature on corporate governance and earnings quality, but the study for therelationship between management capabilities and earnings quality are few. Thisarticle is based on the background.In this article，we first describe the status study of management capabilities andearnings quality in and out of country. Second, we mainly introduced three methodsabout how to definite and calculate earnings quality, there are the perspective from thequality of accounting information，the supply of accounting information and thecapital markets, we selected two kinds: Manipulation of accruals and earningsresponse coefficients as an alternative indicator of earnings quality of. Thirdly, itdescribes the measurement method of management capabilities of (data envelopmentanalysis), selected manufacturing data from 1998 to 2009, calculated managementcapabilities of the 2009，and proposed use management capability to evaluating theefficiency of management .In the fourth part of this paper, we analysis the influence ofthe management ability to the manipulate profits, the results obtained are consistentwith the assumption, the stronger the management ability is, the higher the earningsquality is, the lower the accruals profits is, that is to say，a management, who havemore talent , will use this method，like improved efficiency, reduce costs to improvethe company’s profits, rather than through a variety of related party transactions orwhitewash the financial statements to artificially control the profits; then, we analysisof the relationship of management and earnings response coefficient, the resultsobtained with the assumptions do not match, probably due to the“dominance”of theour country, many of the rights are vested in the hands of the controlling shareholder,the ability of managers can not be recognize by external market; the last part of thearticle we studied of the limitations of this article and listed a few suggestions .