The Research Of Earnings Management Of Listed Company Affect On The Quality Of The Profits In The Perspective Of Industry

In recent years, with the deepening of the research on the profit quality, the externalinformation users, such as government, creditors, and investors rely on profit quality alsogradually deepened when making decisions. At the same time, due to the existence of theelastic space the rule of accounting policy and accounting system, the managementauthorities of listed company earnings management has become a common phenomenon.Analysis of the motivation theory of earnings management, different industries becauseof their different backgrounds have different earnings management motivation, resultingin different impact on the profit quality.In this paper, the author comb the theoretical basis of earnings management andprofit quality, then selecting and promoting the most suitable model for the in this paper,after the contrast all the model of now. The author improves earnings management modelin searching regressions of model on the basis of the improved expand Jones model,makes the regression model more accurate, and more suitable to earnings managementquality evaluation divided by industries. The evaluation of profit quality is improved thealgorithm of coefficient of variation based on analytic hierarchy process. It is to thebenefit of gathering data.This article selects the latest data to carry on the quantitative the degree of earningsmanagement and profit quality level of listed companies, and then ranks them accordingto the industries, after the analysis of them in order to study further in industryperspective of earnings management effects on the profit quality of listed companies.Specific results are divided into four kinds of circumstances. The first, earningsmanagement plays a role of promoting profit quality and profit quality is in a high level.The second, earnings management has a bad effect on profit quality and profit quality isin a high level. The third, earnings management plays a role of promoting profit qualityand profit quality is in a low level. The last, earnings management has a bad effect onprofit quality and profit quality is in a low level.Finally, this paper combined with the development of the industry background, andaims at putting forward effective suggestions for the external information users, such asgovernment, creditors, and investors. The author suggests the government to strengthenthe supervision and administration of monopoly industry. Creditors should perfect creditrating system, and focus on the categories of profit quality low-ranking industry class.Small and medium-sized investors should to avoid investing the industry class whoseprofit quality is low and the influence of earnings management on profit quality is bad.