Research On The Information Content Of Non-routine Profit/Loss

Accounting Earnings information is one of the core information in the financial statements disclose the information of concern to many scholars. non-recurring profit and loss information for listed companies to manipulate earnings in a major way is to become the object of concern by the majority of researchers. First in1999, the China Securities Regulatory Commission promulgated the requirements for non-recurring profit and loss information disclosure requirements. Since then, the China Securities Regulatory Commission and four of the disclosure of non-recurring gains and losses and specifications made a revised respectively in2001,2004,2007and2008. In2008, the China Securities Regulatory Commission issued the latest revision of the disclosure requirements of the non-recurring gains and losses amendment provides that a listed company on a regular basis in the preparation of company reports. Application materials and the preparation of the prospectus when issuing company stock must be non-recurring gains and losses specific projects. The occurrence amount and financial indicators to make a full disclosure.The direction of benefit to the company’s own development in order to affect the stock price of listed companies in the disclosure of "net profit after deducting non-recurring gains and losses" this indicator there is a manipulation of the suspects. What to require listed companies in China’s securities market for non-recurring profit and loss information for mandatory disclosure of this initiative is much better or not, and ultimately to the disclosure regime for the majority of investors based on the non-recurring gains and losses decision-making to provide a real and effective information up to measure this information to disclose whether the decision usefulness. Over the past decade, whether the disclosure regime of the non-recurring gains and losses and expected the same. After deducting non-recurring gains and earnings information is more valuable than before? Managers are more inclined to the use of non-recurring gains and losses of specific projects in which to manage earnings? Non-recurring profit and loss information is operational accounting profits more easily by managers as a means of earnings management?As for the content of non-recurring, the former scholars of the study mostly selected1or2years’sample data. There is no trend of non-recurring profit and loss information content as a research focus; these samples concentrated in2006didn’t reflect the new implementation of the guidelines. As well as split share structure reform of non-recurring profit and loss information content. Therefore, this paper will expand the sample range, selecting the new guidelines implemented before and after four years.2007-2010superiors company sample to conduct a comprehensive empirical test. in order to system effects of non-recurring profit and loss information useful decision making and mandatory disclosure of the information to draw a more comprehensive conclusions and to provide empirical evidence for improving our performance reports.Based a comprehensive comparative analysis, we got the following conclusions:Compared to the wide caliber of the net profit. net adjusted profit after non-recurring gains and losses and the value more relevant; difficult to determine the non-recurring gains and losses in earnings management more advantage of specific projects. non-recurring gains and losses is a flexible and comprehensive means of earnings management; operational accruals means compared to the accrual basis. non-recurring gains and losses is more important means to be profitable.Finally, there are still some limitations and difficulties in this research. The different methods and the differences in the study model selection may lead to different conclusions. This text in the value of the information content of the non-recurring gains and losses based pricing concept of empirical research and are not in concept and contract concept using reward models further empirical research on the value of the non-recurring gains and losses related. Second. During the empirical test of the time the definition of earnings management is confined in losses motivation, not considering the profit smoothing "big bath", etc. and concluded there may be sample selection bias may be an impact on convincing the underlying factors.