| Since the reform and opening up, more and more investors look to invest in stock market As the number of listing Corporation is growing, the listing Corporation’s financial report will become the focus of the investors in order to get a higher yield and better understand the financial situation of the enterprises.They especially concerned about the earnings information, which is the priority among priorities of its attention. Accounting profit can be seen as a special kind of information commodity, because it is not only has the characteristics of quantity, but also has the characteristics of quality aspects. We should not just pay attention to the quantitative evaluation on profit and ignore the quality of earnings. In recent years, accounting fraud cases occur frequently and make investors suffer economic losses. At the same time the authenticity of the listing Corporation report earnings have been questioned. Therefore how to analysis the real profit quality through the report has become their focus. At present the earnings quality evaluation has not formed a unified standard system standard, this article is based on this background, discusses a series of problems to the connotation, characteristics, factors affecting the quality of earnings and the research situation.This paper mainly concerns the profit quality characteristics of safety, security, stability, cash continued growth and profitability aspects, and select 12 profit quality index construction of earnings quality evaluation system, combined with principal component analysis method to analysis the 30 listing Corporations’ earnings quality from the year 2010 to 2012. Finally, we give some suggestions about how to improve the quality of earnings listing Corporation correspond to the result of empirical analysis. |
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