The Research On The Influence Of Profit Quality Of Operating Activity On Abnormal Return

Domestic and foreign scholars' researches on profit quality mostly focus on the influence of profit structure or each profit component on enterprise value or stock return rate.However,there is little research on the impact of operating assets-core profit-operating cash flow on abnormal return of stocks.This thesis focuses on study the impact of operating profit quality,asset appreciation quality of operating profit and operating cash acquisition quality on abnormal return of stocks.This article takes abnormal return as the dependent variable by empirical research method.The multiple linear regression model is established on the basis of the independent variables of core profit quality,operating assets return rate and core profit cash acquisition ratio.Companies in manufacturing and consumer industries in A share market are the research objects.This thesis makes descriptive statistics,correlation analysis and regression analysis of sample data,and deeply studies the influence of operating profit quality on abnormal return of stocks.Then the robustness test is carried out and verified the research conclusion.The research shows that there is a significant positive correlation among core profit rate,operating assets return rate,core profit cash flow acquisition rate and abnormal return of stock price of public companies.The growth rate of net profit has a significant positive correlation with excess earnings as well.It indicates that these important indicators including return rate of operating assets,core profit rate,core profit cash flow acquisition rate,net profit growth rate,showing the sustainability of enterprise development,are important factors affecting the abnormal return of stock price of public companies.There is only a weak negative correlation between enterprise size and abnormal return,and there is only a weak positive correlation between equity multiplier and abnormal return.Therefore,among the variables involved in this thesis,only high operating profit quality is an important factor affecting the abnormal return of stock price of public companies.The key factor for enterprises to obtain abnormal return is to continuously improve the quality of their operating activities to achieve sustainable development.This thesis makes an empirical study on the impact of operating activity profit quality on stock abnormal returns,which is the main innovation point of this thesis.