A Study On The Impact Of The Operation And Management Of Competitive State-owned Enterprises On Earnings Persistence

Since the Third Plenary Session of its Sixteen Central Committee passed " The communist party of China is about improving the decision of several problems in the socialist market economic system" in 2003,it means that the reform of market economic system in our country enters the perfect stage.Under the current market economic system,the development of competitive state-owned enterprises is increasingly strong,annual profit growth is on the rise.Competitive state-owned enterprises as the main body of socialist market economy,we can combine the superiority of socialist public ownership with the positive effects of market economy and competition.To better play its role in mixed ownership reform.And the earnings persistence as an important feature of earnings quality,it is the comprehensive performance of enterprise profitability.The empirical research on surplus persistence is mainly focused on corporate governance,internal control,enterprise value and other aspects,few literatures discuss the impact and degree of operation and management on earnings persistence.Therefore,based on the background of this special system,this paper probes into the influence and degree of the operation and management of competitive state-owned enterprises on earnings sustainability.The study found that in the mechanism of the operation and management of competitive state-owned enterprises,in the case of the chairman and the general manager,improving the shareholding ratio of the largest shareholder and executive compensation is a positive impact on earnings persistence.The proportion of academic independent directors,hiring "Top Ten" audits,capital structure and capital intensity are a negative impact on earnings persistence.In further examination,the paper studies the influence of the operation and management mechanism of competitive state-owned enterprises on earnings persistence in the following two periods at first,it is concluded that the proportion of academic independent directors and the degree of capital intensity have no lasting effect on earnings persistence.And than the same company's operation and management mechanism is placed in different state-owned enterprises,this paper studies the differences between the corresponding mechanism and the influence of earnings persistence.At the same time,this paper conducts a competitive and non-competitive state-owned enterprise to examine each other and standardize the sample data,it breaks the old simple "yes or no" research model,it is found that capital intensity is the most important operation and management mechanism that affects the earnings persistence of competitive state-owned enterprises.However,the influence degree of the different operation and management mechanism of monopoly state-owned enterprises and public welfare state-owned enterprises on earnings persistence is different.The results of this paper have enriched the influence and degree of the operation and management mechanism of state-owned enterprises with different characteristics in the field of earnings persistence.Finally,it is necessary to join market index to study the effect of market condition on enterprise operation and management.The results show that with the strengthening of marketization degree,the effect of operation and management mechanism on earnings persistence is stronger.The results of this paper have enriched the operation and management of state-owned enterprises in the field of earnings persistence in China.In this paper,a variety of research methods are used to discuss on the relationship between operation management and earnings persistence of competitive state-owned enterprises.Combined with the theory of research,improved the corporate governance structure,enriched the executive compensation incentive system,enhanced external consultation and supervision,optimizing the debt mechanism,optimization of asset management and other reform of state-owned enterprises has put forward some suggestions.Of course,there may be deficiencies in this article.In the future research,we need to further seek relevant theories and practical basis.It can further make enterprise operation management and earnings persistence research into a complete system.