Study On The Comprehensive Evaluation Of The Earnings Quality Of The Listed Companies

The evaluation of earnings quality is a useful tool by which the investors can see through the value of the listed companies. Investors can make investment decisions more effectively according to the results of the evaluation of earnings quality. In addition, government can also supervise the listed companies according to the results of the evaluation of earnings quality, in order to improve the efficiency and the actual effect of the accounting supervision.The main parts of my study are as follows. Firstly, this paper constructs the evaluation system of earnings quality according to FASB No.2, and then designs the indexes for evaluating the predictive value, the feedack value, the neutrality and the substance of earnings. Then taking 49 A shares power listed companies in 2006 as the samples for empirical analysis, this paper evaluates the earnings quality of the samples. At last, this paper examines the relationship of the earnings quality coefficients and the earnings usefulness by Ohlson model in which the earnings quality coefficients are introduced.According to the results of the empirical research,We can draw the conclusion that the comprehensive evaluation system of earnings quality constructed in this paper is effective and reasonable.