The Research About Listed Companies' Financial Reporting Quality Affect On Company's Value

The financial report is a comprehensive written document of reflecting the accounting information that the enterprises provided such as financial position on a specific time and operating results, cash flows and shareholders' equity on a certain accounting period. It reflects not only the fulfillment of fiduciary duty manager but also provides decision-making for users of financial statements. As the accounting information window, financial report is important to enterprises' stakeholders. Although the audit opinions, which are issued to the enterprise's financial reports every year by accounting firms, identify the quality of financial reports in a certain range, the same audit opinions to the financial reporting may have different quality. Many business failures are also concerned with the poor quality of financial reporting, information users, who make decisions based on the unreliable financial report, are not rationally. Many studies have also confirmed that the quality of financial reports are closely related to financing costs, investment efficiency and the content of the company's value. Facing such significant financial report, it is necessary to establish a quantitative measure system and deeply analyzes the internal mechanism of the quality of corporate financial reporting and the company's value.Firstly, this paper reviews the domestic and foreign literature about the financial report's quality and the value of the company, based on the principal-agent theory, efficient market hypothesis theory, excess earnings disclosure theory and information economics theory, It discusses and analyzes the internal and external factors that the financial reports'quality influenced the company'value, then it deeply explores the internal mechanism from three aspects, the disclosure of financial report, information characteristics of financial report and earnings quality of financial report. The good disclosure of financial reports helps companies increasing the value and obtaining excessive returns. The reliability and relevance of financial report information helps reduce asymmetry information of capital markets, improve the company's value. High quality earnings of financial report have positive effect on firm value.During the research, we process the sample data, which was based on the theoretical analysis, this article select804 manufacturing industries as samples which listed in Shenzhen and Shanghai Stock Exchange between 2010 and 2013, putting forward the related hypothesis. proving financial report quality and value of the company have some relevance by positive analysis, concluding that the high quality of financial report shave positive effects to company' value. The higher earnings accrued quality of financial reports, the higher company'value, and there is a significant positive correlation between the two. The higher smoothness of financial reporting earnings and the higher company'value, they shows a significant positive correlation.