Research On The Evaluation Of Earnings Quality Of Listed Companies On GEM

As a special data indicator reflecting the operation of the company,accounting surplus has the dual characteristics of quantity and quality.In these two characteristics,people pay more attention to the quantitative characteristics of corporate accounting earnings,and they often lack attention to quality characteristics.In recent years,many of the companies listed on the GEM listed companies have been continuously excavating their financial information,and people's attention to accounting information has increased.The operating conditions of listed companies and the quality of accounting information of companies have always been the focus of investors,creditors,and related personnel of the company's operations.Profitability,as a core component of corporate information,has always been the focus of attention of all parties.Importantly,the company's surplus information will directly relate to the investor's investment choice and the decision of the manager.Through the surplus information,we can see whether a company's operations are good or bad,but if the quality of earnings information is not guaranteed,it will probably cause great information interference to decision makers and investors,affecting decision makers to make correct decision-making judgments.It will even cause great damage to the health management of the company.Therefore,it is necessary to evaluate the earnings quality of listed companies on GEM.Based on the background of this research,this paper evaluates the earnings quality of listed companies on GEM through literature review and qualitative and quantitative methods.First of all,it reviews the domestic and foreign related researches,and summarizes the related connotations of the surplus and its management.Second,basedon the theoretical research,it presents the following three aspects: the authenticity,realizability and sustainability.The problems in the quality of earnings of listed companies and their causes are analyzed.Again,for the sample data and the evaluation index system,the samples are selected from the “electrical machinery and equipment”manufacturing listed companies on the GEM,and their 2014 to 2016 years are studied.The earnings quality of the index system is based on the four characteristics of earnings quality.After that,the principal component factor is extracted,the model is established,and the company's comprehensive evaluation scores for earnings quality are calculated,and the quality of earnings is analyzed and evaluated.Based on the foregoing analysis,we propose measures and suggestions that are conducive to enhancing the earnings quality of listed companies on the GEM.We hope that they can play a role in improving the earnings quality of the companies listed on the Growth Enterprise Market and will ensure that the company's business information is correctly reflected by improving the quality of earnings.