Empirical Study On Earnings Quality And Company Value

In this study, taking Ningbo listed companies as a sample, using empirical analysis method to study the relationship between earnings quality and company value, the empirical results show that, there is a significant positive relationship between earnings quality and company value. The income security, sustainability, growth, stability of listed company reflect the company’s earnings quality level and the connotation of company value, besides, the earnings quality directly affects company value. Therefore, from both the company’s internal management and external value point of view, we must pay attention to cash flow management, ensure safety of the company management, pay attention to the distinctive main business and enhance the company’s continuous profitability. In addition, in the increasingly fierce market competition environment, R & D activities are not only the source of technological innovation, but also the key factors for the company to keep the core competitiveness and to seek survival and development, as well as the important decision basis for the outside investors to forecast the future profitability and development potential index of the company.This study is divided into four chapters:The first chapter is the introduction, mainly expounds the research background and significance of the thesis, research status at home and abroad, the research contents and methods.The second chapter is an overview of the theory, mainly expounds company value’s earnings quality, connotation definition, characteristics and influence factors. Among them, this study argues that the earnings quality characteristics include authenticity safety, sustainability, stability, growth and profitability, these characteristics also affect company value, so that there is a correlation between earnings quality and company value.The third chapter is the listed companies’ earnings quality and company value judgment. Through the earnings quality analysis of the descriptive statistics of the sample firms, evaluation of listing companies’ earnings quality in Ningbo; construction of value theory model of earnings quality characteristics and company value, and the test by using regression analysis, it shows a significant correlation between earnings quality and company value.The fourth chapter is the conclusion and prospect of research. It mainly expounds some of the conclusions of the main research of this thesis, according to the empirical results, this study expounds the significance, limitations and research prospect.