Empirical Research On Earnings Quality Of GEM Companies

October30,2009the first batch of28companies stock start trading, whichmarked the establishment of the China’s GEM, GEM, also known as the secondboard market, that is, the second stock exchange market, refers to the outside of themotherboard designed for temporarily unable listed SME and financing channels androom for growth in the securities market for emerging companies, the effectivesupply to the motherboard market, occupies an important position in the capitalmarket.GEM is to provide more convenient financing channels for SME, ofadjusting the industrial structure, an important means of promoting economicreforms played an important role to improve the socialist market economic system.GEM compared with the mature markets are at an early stage, with itsspecificity, such as GEM, the biggest feature is low barriers to entry into the strictrequirements of the operation, the GEM market behavior of enterprises yet to bestandardized, the market has yet to be further improvement and development.This article is relying on China is not yet standardized GEM to carry outempirical research. Quality evaluation of accounting income, the use of factoranalysis to examine factors affecting on the quality of listed companies income andearnings quality evaluation system, and tested through the GEM data, hoping to findeffective to improve the quality of the GEM earnings measures.