Evaluation Of Earning Quality Of Listed Construction Enterprises Based On PCA And Grey Relational Analysis

Over the past decades,the development of China's construction market and industry has gone from small to large,from weak to strong.As the main industry of national economic development,the supporting role of construction industry for rapid economic development is more and more obvious,but the problem of low earning level and low earning quality is becoming more and more obvious.It is of great significance to reasonably and effectively evaluate the quality of earning,to grasp the real production and management situation in the construction industry,to improve the ability of the construction enterprises to manage their own production and management and to resist the risk,as well as to provide more accurate judgment standards for investors and stakeholders.On the basis of domestic and foreign normative and empirical research,this paper studies 41 listed companies in construction industry,analyzes the accounting characteristics and cash flow characteristics of China's construction industry,and introduces 6 new indexes to construct the index system of earning evaluation.And using the PCA to select the index of the representative earning attribute,the entropy method is introduced into the grey relational analysis,the weight of indexes is optimized,and the earning evaluation model is set up.The results show that the four new index,such as debt repayment cash ratio,the deviation rate of revenue recogniton,the deviation rate of cost recogniton and the index of self development are more able to reflect the characteristics of the quality of earning,and the design of the index is reasonable and operable.The earning quality of the listed construction enterprises is measured from 6 aspects of the earning,and it is concluded that for the construction enterprises,the reliability of earning has a more significant impact on the quality of earning,which is in line with the practice of the industry.In the practical application of the new revenue criterion,the accounting method of large construction projects has not changed much.Therefore,the research content of this paper has certain applicability.At the end of the paper,the grey relational grade of 41 listed construction enterprises is sorted,and the results of the earning quality evaluation are analyzed from the perspective of the specific classification of the industry.