Research Of The Correlation Between The Listed Corporate Non-recurring Items And Quality Of Financial Report

Non-recurring items often occupies a larger proportion of profit in listed companies of our country, and become an important means of earnings manipulation of listed companies. As more and more attention pay on the high quality of financial reporting, the impact of non-recurring items on earnings quality has attracted widespread attention, therefore, in this paper, on the basis of the exploration of non-recurring items and the quality of financial report, we put forward to standardize the management policy of non-recurring items and contribute to improve the quality of financial report. This article selects the A-share listed companies as the research object, and broken down into small profit company, turnaround company and loss company. Using empirical method to inquiry the correlation between non-recurring items and the quality of financial reporting. In order to strengthen the non-recurring items management and provide empirical data to improve the quality of financial report.This paper consists five parts:The first part is introduction. This part mainly introduces this paper’s research background and research significance, introduced this article research goal and research content and research methods, as well as combine and summarize the related literature of both China and abroad, and finally summarize this article’s contributions and shortcomings.The second part is the theoretical analysis. This part firstly introduces the concept and content of non-recurring items and relevant theory, and then introduces the meaning and definition also influencing factors of quality of financial report and related methods on the assessment of financial reporting quality. Finally, comes the impact of non-recurring items of the loss, small profit, profit company on the quality of financial report, intends to research the phenomenon through the analysis of the basic theory, and the spot between the theory of hypothesis is put forward to provide ideas for later study.The third part is the research design. Through analyzing the phenomenon and the theory of concrete, from the phenomenon we can select the research sample, and then put forward the research hypothesis, the sample data variable definition, select non-recurring items and the measurement method of the quality of financial reporting, in order to make preparation for empirical analysis.The fourth part is the empirical analysis. First is the descriptive statistics analysis of the selected sample characteristics, and then through the research hypothesis we use the selection of the sample and the variable model to do the empirical analysis, at last we concrete analysis of listed companies of our country from the results of the correlation between non-recurring items and financial reporting quality, at the same time do the robustness test.The fifth part is conclusion. Through the above research we can get the conclusions of empirical research, further we put forward countermeasures and suggestions, which is the writing significance of the article.This article adopts the method of empirical research, we select the A-share listed companies of2010-2012annual report data as sample data, and use correlation analysis and multiple regression analysis, so as to draw the following conclusion:the non-recurring items of listed company and financial reporting quality exists significant negative correlation, non-recurring items of meager profit company has significant negative correlation with financial reporting quality, non-recurring items of loss company has the negatively correlated with the high quality; Non-recurring items of profitable company showed significant negative correlation wirh the quality of financial reporting. According to the results of empirical analysis, we put forward five suggestions:improving the accounting system and regulation system, improving the disclosure form and making the investors legal protection better, strengthening the intermediary role.Different from previous research, this article based on non-recurring profit and loss of earnings management, and is divided into small profit company, loss company and profit company to explore the correlation between non-recurring profit and loss and financial reporting quality. And based on maneuvering accrued profit as a substitute for financial reporting quality variables, and handling accrued profit calculation model is based on nonlinear Jones model, the article contribute to enriching the modified Jones model.