| Coal is the basis energy in our country. Earnings quality of coalenterprises is not only related to the economic security, but also closely relatedto people’s daily life and social stability. With the economic depression in recentyears, coal enterprises have been away from the ten years golden age since2012.Coal economy showed the following characteristics: increase of coal production,decline of growth rate, increase of imports, high inventories, drop in price,receding of investment and profitability. Management of most coal companies isdifficult, thus, operators, managers, employees, creditors and investors paymore attention to coal business performance. Due to the decline of coalenterprise efficiency, the objective assessment of the coal enterprises earningsquality has been an urgent problem.The current evaluation system of earnings quality is mostly based onearnings quality features, which is not applicable for the coal companiesbecause of their different features from other enterprises: high risk in theproduction process, environment pollution, huge investment of fixed assets.These factors should be considered in evaluation of earnings quality of coalenterprises. Combined with the management features, building the earningsquality evaluation system for coal companies will be help to improve theirearnings quality, make objective evaluation and right decision to stakeholders.By analyzing influencing factors, evaluation methods of earnings qualityand current status of earnings quality evaluation system, it is necessary to buildearnings quality evaluation system of coal enterprises according to theirbusiness characteristics, and the evaluation index system is founded concerningthe cash, technology, safety, environment and assets. Based on the evaluation tothe earnings quality of DaTong coal company by applying the constructed evaluation system, the operability and applicability of evaluation index systemwas verified. |
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