The Persistent Empirical Studies Of Listed Companies Profitability

After China’s entry into the WTO, the stock market is booming,Stock market investments have gradually become the investment hot spots.The problem of accounting information quality became the focus of attention to the persons who are correlated with the interests, such as investors, creditors and CSRC,etc. With the increasing number of listed companies in China,whether its disclosure of earnings information is true and the profitability is persistent has a close relationship with the investment decision of investors,rebacking the principal and interest of the creditor and monitoring work of the CSRC.Moreover, in today’s high-speed development of the economic environment, some companies implement the business model of the group or tried to develop diversified business in order to pursuit high growth profit.This study research the factors that affect the sustained profitability has realistic significance of the company’s own development.This thesis analyzes the sustainable profitability of listed companies in theory, earnings from the connotation of profitability, sustainable development definition and the connotation of sustainable profitability, and from the theory of scale economy, enterprise life cycle theory, the theory of industrial cluster and company governance mechanism. Then the factors influencing the sustainable profitability is analyzed in detail from financial factors and non-financial factors.In empirical research,178A-share mechanical equipment and instrument industry companies is selected as samples,from2009to2011, using the factor analysis method to extract the main factor, sorting the sample company according to the comprehensive score, and quantitatively analyzing the mechanical equipment and instrument industry profitability persistent condition.The mechanical equipment and instrument industry different years,different fruit industry sustainable profitability is also compared through the further statistical results. Finally, we can draw the conclusion:firstly, mechanical equipment and instrument industry profit sustainability is low overall, remains to be further improved. Secondly, the majority of the company’s profit level volatility is big, poor stability. At last,this thesis put forward in order to improve the listed companies’ profit ability persistent advice, not only to improve accounting norms and company supervision mechanism, but also more important improve their core competitiveness from internal obtains.