Research On The Evaluation System Of The Earnings Quality Of Listed Companies In China

Surplus as the key part of enterprise accounting information,is an important reference for decision-making by stakeholders,is also the key parameters in the securities market regulation.However,numerous domestic and foreign financial scandals were broke out;the number of disclosed corporate earnings reports and the actual financial status of foreign were vastly different;Information provided by the surplus quantity cannot meet the demand of the parties.Therefore,the earnings quality evaluation has become a focus of researchers and regulators.The term “surplus” in this article refers to surplus accounting earnings.Firstly,with regard to the definition of the concept of earnings quality,in many articles,though earnings quality is equivalent to the earnings and information quality surplus profitability,I think this is a misreading of earnings quality.Earnings quality should include two aspects: one is the consistency degree of accounting earnings and economic surplus,and the other is the quality of their economic surplus.Then,obtain earnings quality characteristics properties from three-level reasons why quality problems of a surplus begin to appear.That is the cause of the economic surplus capacity,the defective existing accounting system and subjective manipulation leads to defects in the quality of earnings.And from this we obtain earnings quality,reliability results,cash protection,growth,security,profitability,persistent characteristic properties.Then,develop a China's listed companies earnings quality evaluation system.Earnings Quality indicators are chosen based on earnings quality characteristics,where reliability as the most important feature is the basis of other attributes.Reliability is a separate property characteristics,and the reliability index is obtained through assignment of variable weight synthesis empowerment.The enterprises whose reliability index is lower than the standard value are classified as poor class directly.The enterprises whose reliability reach the standard value will be classified based on the protection of cash earnings quality,growth,security,profitability and sustainability,by the method for establishing the gray fixed weight clustering comprehensive evaluation model,then this entire classification evaluation system established.After the establishment of China's listed companies earnings quality evaluation system,the 2011 to 2013 financial data from 1554 listed companies in China's manufacturing industries as samples,the system is verified by two ways:(1)a theoretical basis for the first authentication method is that the better the surplus quality of the company,the higher its future sustainable growth of the rate of return on net assets will reach.As input variables,this method results in corporate earnings quality level classification of listed companies in the manufacturing sector by 2011 data,then measure the levels of the company in 2011 after two years of growth in the mean rate of return on net assets,analyze and compare these values at last.(2)The second authentication method is based on the theory that earnings quality in the same industry in the ST are poor than top 100 companies.So the company's criteria is defined as the proportion of company eventually occupied by sample stratification ST "poor" scale and proportion of such companies accounted hundred enterprises "excellent" category.Finally,give my advices to improve the earnings quality.Finally,give my advices to improve the earnings quality.