Earnings Persistence Research Of Chinese Nonferrous Metals Industry Listed Companies

Earnings persistence is an important index of earnings quality, concerned by stakeholders, such as internal managers, investors and creditors, and can be used to assess the value of the enterprises. The research of earnings persistence can not only help companies focus on improving earnings persistence, but also help investors make more appropriate investment decisions.As far as Chinese nonferrous metals industry listed companies are concerned, analyzing their earnings persistence has important theoretical value and practical significance. Through analyzing earnings persistence of China’s nonferrous metals industry of listed companies at different times, we can understand their earnings levels and trends, and forecast future trends, providing stakeholders with certain decisions and providing constructive suggestions for the development of Chinese nonferrous metals industry. At the same time, it can deepen the theoretical research of accounting earnings, to further improve the system of accounting theory.On the basis of summarizing the domestic and foreign relevant literature of earnings persistence studies and drawing on the existing research results, This paper selects the sales net interest rate, main business profit, earnings per share, rate of return on total assets, operating cash flow per share, cash flow ratio, debt coverage ratio, cash earnings growth rate of net profit, operating income growth rate and the growth rate of total asset etc ten ratio index, constructing earnings persistence evaluation index system from history, reality and future earnings aspects, and using Chinese non-ferrous metals industry55listed companies data in the2010-2013years as the sample, using principal component analysis method to study the earnings persistence, and getting the following conclusions:(1)The earnings persistence level of Chinese non-ferrous metals industry listed companies was low in recent years, showing a trend of polarization.(2)The earnings persistence score of some listed companies large changed in the fiscal year, part of the Chinese non-ferrous metal industry listed companies may exist earnings management behavior.(3)Competition among enterprises is the competition of comprehensive strength, only performed better in all aspects of the company can get a higher score, and showing that the earnings persistence model that this paper constructed has a certain interpretation ability and scientific. On the basis, putting forward to further improve the earnings persistence’s countermeasures and suggestions of the China non-ferrous metals industry listed companies.