A Case Study On The Relationship Between Non-recurring Profit And Loss And The Value Of Listed Companies

The financial report of the listed company is an important source of information about the stakeholders,and if the financial report can be fully and promptly disclosed,it will provide a lot of useful information for the decision-making of the relevant stakeholders.In the securities market information disclosure,China’s regulatory authorities from the late nineties of last century the introduction of the concept of non-recurring gains and losses,and with the passage of time more specific refinement.In the financial statements reflect the economic results of enterprises and the level of future economic growth in the various benefits,the various components of the importance is not the same.Market mainstream opinion is non-recurring gains and losses because it does not reflect the company’s true profitability,so the evaluation of the company’s operating performance needs to be removed in the financial statements.However,the non-recurring gains and losses of some companies on the market are stable and have a lot to do with the company’s main business,and such companies should regard their non-recurring gains and losses as part of the true profitability of the business.This article assumes that the market is valid.Based on the effective market hypothesis,the stock price can truly reflect the company’s value and actual operating conditions.So the company’s stock price volatility and really can represent the company’s operating status of the financial indicators should be very relevant.The article compares the relationship between the earnings per share and the market value of the company and the correlation between the earnings per share and the market value of the company,using the comparison of the GREE and the BOE as the case.In addition to their non-recurring gains and losses and the relationship between the company’s business and non-recurring gains and losses of the stability and volatility of the problem.The data show that the non-recurring gains and losses of GREE are stable and sustainable,and have a great relationship with the main business.The non-deductible income is better able to reflect the actual operation of the Company.And the BOE’s non-recurring gains and losses are not stable,do not have continuity,and the company’s main business does not matter,deductible income is better reflect the company’s real operating conditions.There are two types of enterprises on the market,and accounting standards require all enterprises are required to deduct non-recurring gains and losses,such aprovision is not true to reflect the actual situation of all the company’s market,so this article that the relevant stakeholders and researchers should be differentiated between the two types of companies.