Evaluation Based On The Cash Flow From The Profit Quality Of Listed Companies

In the 21 st century, with the rapid development of information technology and the accelerated process of global economic, the market structure is happening unprecedented dramatic changes. More and more Chinese enterprises are facing increased competition and pressure on less profits, many companies began to diversify and expand blindly,companies use various means to increase profits, at the same time, they should focus on the quality of profits.The quality of financial information which based on the quality of the cash flow, it get more and more attention from various stakeholders. This paper is based on the theory and method of profit quality, firsty, introduced some literatures from domestic and international research of profit quality, to evaluate those literatures with the combination of China ’s national conditions.Secondly, to complete and extend the model combined with China’s specific conditions on the basis of those researched literatures, we select four indexes: the growth, income, stability and financial security. Thirdly, we use annual data of the public transport industry listed companies in China, using SPSS model to get empirical analysis. And ultimately, made the conclusion from empirical research based on the cash flow of profits quality,in the last,put forward some suggestions for the healthy development of China’s capital market.In this paper, a case study in China’s Shanghai A-share public transportation industry,the use of 73 listed companies in the public transport sector 2011-2013 financial data,through correlation and significance tests of index datas, the initial set of indicators were screened, build quality profits evaluation group.Then, the use of factor analysis of the evaluation index weights assigned final draw profits quality. Quality ranking by profit and profit analysis of four sub- quality analysis, we can see that the quality of our public transportation industry profits is not satisfactory profit performance for four scores are not high. Finally, the presence of the four aspects of the profit for the problem, proposed to improve the views.