Empirical Research Firm Financial Characteristics And Operational Characteristics Of The Impact On Earnings Quality

Earnings quality is not only a very valued corporate financial data managers, butalso the most concern of accounting information for the external users of financialstatements. To analyse and research on earnings quality can provide more reliable andaccurate accounting information for the external users of financial statements to help itto carry on the investment decision making. However, in recent years, the domestic andforeign enterprise management fraud appear continuously through earningsmanagement, profit manipulation case, make the earnings quality of listing Corporationincreasingly lower. How to measure the enterprise earnings quality correctly and truly,and ensure that the accounting information is true and reliable, has become the focus ofthe topic of the current. Therefore, this study of the impact on earnings quality fromcorporate financial and operational features characteristic angle.This paper firstly summarized earnings quality from three aspects, there are thedefinition of earnings quality, the influencing factors of earnings quality and thestandard measure of earnings quality, and combined with China’s domestic situation ofthe present study were reviewed; Secondly, this paper studies the earnings quality fromthe perspective of financial characteristics, The firm’s financial characteristics can bedivided into four aspects of cash flow, profit ability, debt paying ability and liquidity,The use of domestic listing Corporation in2009to2013financial statements as thesample data, then multiple linear regression model, the correlation of four financialcharacteristics and earnings quality is discussed and analyzed, and further through themultiple regression analysis to explore the characteristics of enterprise financial sizeimpact earnings quality. Then prove that of the cash flow of the enterprise, profit ability,debt paying ability and liquidity are positively related with earnings quality, and in thefour indicators, the profitability of the business impact on earnings quality maximum.Finally, This paper also analyse and research on the characteristics of different businessenterprise earnings quality level from the point of enterprise business characteristics, touse enterprise business complexity and uncertainty as a standard, through theassignment method, make enterprise according to the different score into four categories,Use2013China’s listing Corporation financial statements data as sample, throughempirical research, analysis and prove that when the business complexity anduncertainty is strong, the corporate earnings quality is low. Meanwhile, on the basis ofabove, Summarizes some measures and suggestions about how to reduce the complexity and uncertainty of business of listing Corporation in China.