The Research On The Influence Of Profit Quality On Firm Value Of Real Estate Industry

Profit quality can have a great influence on the firm value.The number of the profit is closely related to the recognization of profit targets, the determination of the listed price,the refinancing of listed companies, special processing and delisting. For the external users,such as investors and creditors, profit is also an important reference for their investment decisions. But accounting profit is calculated according to the principle of accrual basis to the appropriate accounting period of the proportion of incomes and expenses.Some enterprises will increase or lower profit in order to achieve a particular purpose which will affect profit quality. Low profit quality may do harm to investors, creditors, disrupt the normal production and operation of the firm and weaken the government macroeconomic regulation of economic effectiveness. To improve the profit quality can help investors make better financing decisions and improve the firm value.The real estate industry has always been the pillar industry of national economy, the capital of listed companies comes from the capital market.Their operation and their way to manage gets more in line with the research object.More and more people focus on the profit quality, in the fierce market competition, researching the quality of real estate industry profits of listed companies is of great significance.On the basis of the results at home and abroad,this paper first have descriptive statistical analysis on the real estate industry profit quality index system all-round for2012-2014 and then have regression analysis from the stability,reliability,profitability,growth and security of the profit at the same time introducing the company size, company property, business area, policy background, and other control variables to the profit quality impact on the firm value. This paper research profit quality not only from the perspective and hierarchical of profits,but also study its relationship with the firm value.Using standardized research and empirical research method, the following conclusions are drawn:first,the greater the abnormality,uncontinued net non-operating income, investment income, the smaller the enterprise value. Second, the main business profit contribution has a negative correlation relationship to the firm value. Third, enterprises obtain ability and firm value correlation is obvious. Fourth, the growth of the firm has significantly positive relationship to the firm value. Comprehensive the above analysis, improve the quality of profit, to promote the enterprise value can be various efforts from various angles, accordingto the results of empirical research, analysis the reason, respectively on the real estate enterprise itself, government and related departments, national, regulators from the internal and external policy to give suggestions.