Research On The Persistency And Value Relevance Of The Non-recurring Earning Items

With the advancement of economic and social development, the role of capitalmarket in the economic operation of the more important, whether the efficientoperation of the capital market can directly affect the development of the entirenational economy even around, and the degree of development of the capital marketis one of the most important features, they information is the ability to respond.Therefore, in accordance with the amount of information we have to distinguishbetween the reaction in the efficient market hypothesis, the ability to publish thecontent of the information contained in the enterprise for effective pricing. Theconcept of non-recurring gains and losses since1999, introduced several amendmentsto improve the experience2001,2004,2007,2008and its definition has a newdefinition and classification. China Securities Regulatory Commission (hereinafterreferred to as the "Commission") for non-recurring items required repeatedintroduction illustrates the importance for two reasons, the frequency of occurrenceof a non-recurring gains and losses in the enterprise increasingly high; Secondinformation disclosure of non-recurring gains and losses have a lot to define andstandardize the content. In the current study the theory and academia to non-recurringgains and losses are mainly focused on defining and assessing disclosures profit afterdeducting non-recurring and non-recurring items, and non-recurring items constitutematters little research its effect will occur whether the project constitutes a profitforecast in? For further study of non-recurring items, we classify segments fromsporadic or not and whether operating in two dimensions, the non-recurring gains andlosses are divided into non-episodic non-operating gains and losses, sporadic andoccasional non-operating gains and losses operating profit or loss in three parts, theprovisions of this article in2008turn21class subclass of non-recurring gains andlosses classified as three part; theory of non-recurring items constitute continuingexistence, but in the real world, with the arrival of diverse interests, a number ofnon-recurring gains and losses occur frequently also exist. Based on this, the project ’snon-recurring gains and losses constitute continuing relevance and value of research.By learning and applying research methods Sloan classic price models to China in2008-2012A-share listed companies in manufacturing non-recurring gains andlosses continuing relevance and value of empirical studies have found that non-episodic non-operating gains and losses have continued nature and value of thecorrelation, and sporadic gains and losses are not of a continuing nature and value of the correlation; but the value of non-persistent and sporadic non-operating gains andlosses, net of relevance compared to a net profit after non-recurring gains and lossesto be weak. This tells us that in the usual profit forecast evaluation, we can notsimply deducting non-recurring gains and losses, but should take into considerationas a non-profit or non-accidental operation, such as: loss on disposal of non-currentassets, financial occupancy fees. Although this article from the classification ofinnovative non-recurring gains and losses to proceed, the project constitutes its studyconcluded, to provide a reference for investors and regulators, but it is also one flawof this article, the classification method reasonable and scientific questionable.Meanwhile, the enterprise data used for only five years, the panel can not beanalyzed, the conclusion is not strong explanatory.