Analysis On The Earnings Quality Of GEM Listed Companies And Its Influencing Factors

In order to promote the development of innovative small and medium-sized enterprises,to provide the necessary funds for development,China to such enterprises to create a new type of securities market-the GEM,as its financing channels.As the lifeblood of the development of small and medium enterprises,China's GEM market since its inception has been favored by the majority of investors,its price-earnings ratio has been high.However,the real profitability of listed companies on the GEM,whether it has a high sustainable growth,we need the GEM listed companies to analyze the profitability of the situation.Often,investors and creditors and other stakeholders through the financial statements to understand the business situation,to measure the company's profitability of the financial indicators are mainly based on accounting profits.Due to the limitations of accounting measurement itself,the value of the profit in the accounting statement will change with the choice of different accounting methods and the application of accounting estimates.Therefore,the long-term use of accounting profits based on the ability to measure the profitability of the way does not necessarily reflect the true financial situation of enterprises.In this context,only the quality of corporate profits to conduct a specific analysis in order to more truly reflect the financial situation of enterprises.This paper evaluates the profitability of GEM listed companies by selecting the financial indicators of profitability,profit cash content,profit structure quality and profitability.According to the results of the analysis and demonstration,more than half of the sample companies' composite scores were negative in the evaluation of the corporate earnings of the sample companies,indicating that the corporate profitability of the sample companies was poor.The main reason for the poor profitability of listed companies is that the lack of growth ability and the low profitability.The profitability of profit and the quality of profit structure are relatively small.Finally,based on the analysis of the empirical results,this paper puts forward the idea of innovating the profit model,perfecting the corporate governance structure,strengthening the management of the accounts receivable,improving the product quality and correctly positioning the brand strategy of the enterprise,and providing reference for the enterprise to improve the profit quality.