Comprehensive Appraisal Research On Earnings Quality Of China’s High-tech Listed Company

Earnings is an important accounting information released by listed companies,investors, creditors, regulators and other stakeholders take it as an importantdecision-making basis. Common accounting fraud also reminded all stakeholders to focuseven more attention on earnings quality rather than quantity. From the beginning of lastcentury, scholars began to study the evaluation of earnings quality in order to moreaccurately identify listed companies with high earnings quality. With the deepening of thescientific and technological Revolution, high-tech industry is in a period of rapiddevelopments, under the background of global economic recession and China’s sharemarket has been in downturn, SME board and ChiNext which provided the high-techenterprises with a good financing platform become new investing hotspots. Therefore, thispaper study of high-tech listed companies in an attempt to seek better methods forevaluating its earnings quality.First of all, this article describes the theoretical basis to analysis and evaluatesearnings quality, in an overview of the domestic and foreign research achievements, thisarticle gives a definition of earnings quality and characteristics of earnings quality, analysisexternal and internal factors affecting it.Secondly, defining the object of this study--high-tech listed companies, and given itscharacteristics which are different from the traditional characteristics of listed companies,by using statistical data, this article analysis on market performance of high-tech listedcompanies and factors affecting the earnings quality embodied in high-tech listedcompanies.Thirdly, combined with the above analysis, this article selects comprehensiveappraisal method for evaluation of high-tech listed company’s earnings quality,19selectedindicators contains index reflecting characteristics of high-tech listed companies, selecting financial data from2010to2012of30companies of information technology industrywhich is one of the high-tech industry as a sample and analyzing its earnings qualitythrough empirical study. The findings are sample of year2011earnings of poor quality,sample of year2010and year2012earnings quality are better, earnings quality has nosignificant differences between the company in every year, using this method to get theearnings quality ranking of companies differs from earnings per share ranking, everymarkets has different ranking results. Results show that using this method could well makeup for insufficient evaluation of per-share earnings.Finally, this article find obstacles to effectively evaluate the earning quality ofhigh-tech listed company during the empirical study and give advices on informationdisclosure to stakeholders, give limitation and insufficient and questions remained tofurther study of this paper.