Exploration On The Correlation Between Listed Company’s Ordinary Two-way Transaction By Related Parties And Earnings Quality

As the core strength of our country economic market, listed company plays anvery significant role.Their earnings quality needs highly attention.Especiallyownership and management have been separated now,top managements of thesecompanies’s roles in the ensemble situation and strategic direction for thedevelopment of the company are significantly enhanced.Due to the number ofTwo-Way transaction rise in recent years,internal and external scholars pay attentionto this topic.After reading a lot of related literature,we analysis the phenomenon of ordinaryTwo-Way transaction and earnings quality in listed companies based on theprincipal-agent theory,the principle of corporate governance and the theory of cutilityTargeting.We selected ordinary Two-Way transaction data from2008to2010andcompany earnings quality from2007to2012.Firstly we confirmed significantcorrelation between ordinary Two-Way transaciton and earnings quality before andafter the transaciont in profitable listed company and under deficit listed company bythe one-way ANOVA analysis,then using Logistic method to analyzemore.Considering the state-owned enterprise is the key part of listed companies inour country,we further consider the regional economy’s regulated funcition.At last thenonlinearity relationship between ordinary Two-Way transaction and earnings qualitywas proved through regression analysis.The conclusions we get is feasibility anduseful.