Study On The Effectiveness Of Quarterly Reports Forecasting Operating Leverage

As a supplement to the annual report and semi-annual report,quarterly reports provide more information about the prospects of the enterprise for information users,and reduce the obstacles to the development of information asymmetry.Since our laws and regulations clearly stipulates that listed companies must disclose quarterly reports,the "quality" and "quantity" of quarterly information disclosure have been greatly improved,the information disclosure system of listed companies has kept on improving.However,up to now,most of the quarterly reports discloused in China are not audited,the quality of information disclosure needs to be considered.First of all,this paper describes the background and significance of this research,summaries the research status in the related field at home and abroad,then introduce the research contents and methods,as well as the innovation points.Then the second part is the theoretical basis,we introduces the theory of business risks and operating leverage,the related theory of break even analysis and discusses the relationship between the operating leverage and the breakeven point,nextly we introduced the related theory of cost behavior analysis and knowledge in the quarterly report,which laid a theoretical foundation for further study.The third part points out the existing problems in the quarterly report disclosure and give some reasons.The fourth part discusses the significance of the forecast operating leverage from the perspective of the external information users,which make some innovation on the basis of management accounting subjects.The fifth part builds eight different methods to estimate the enterprise's operating leverage,and set three evaluation indicators to evaluate the pros and cons.The results showed that:the cost of decomposition carried out by using quarterly report data is more dependable than using annual report data;the operating leverage estimated by using quarterly report data is more relevant to the investment risk scale than using annual report data;and the results are similar when compared with implied cost of capital.In the end,we put forward some suggestions from the aspects of macro and micro on the basic of problems mentioned above,which aimed at improving the quality of quarterly information disclosure in China.