Research On The Evaluation Earnings Quality Of The Automobile Manufacturing Industry's Listed Company

With economic development, the stock market continue to improve, the role of accounting information is becoming increasingly prominent. And accounting earnings is significant accounting information that listed companies disclosed, so the quality of accounting earnings of listed companies is even more important. Accounting earnings information is an important basis for economic decision-making, if the earnings quality of the information is not high, even the existence of the phenomenon of false, it will mislead investors and other information users, resulting in their economic decision-making mistakes, giving them bring about economic losses. How can the true perspective of accounting earnings to help users of accounting information to make sound economic decision? This requires a listed company's earnings quality research. In this paper, listed companies of Chinese automobile manufacturing industry as the research object, analyze and evaluate the earnings of the quality.First, this article introduced the earnings quality analysis rationale. Based on the summarized in domestic and foreign related literature about the earnings quality, the author explained the concept of their own for the earnings quality, and affect the quality of earnings-related factors were analyzed.Second, based on the design principles of the earnings quality evaluation index, design a number of evaluation indicators of the quality of earnings and the establishment of a listed company earnings quality evaluation index system. From the perspective of the earnings persistence to design reflected the profitability of listed companies; cash support capability, capacity for sustainable growth in earnings of listed companies in three areas of quality evaluation index system. At the same time, select the factor analysis method to build a model of earnings quality evaluation, try to use this evaluation model to analyze and evaluate the earnings quality of car manufacturing industry's listed companies.Third, collected Shanghai and Shenzhen listed companies, automobile manufacturing industry evaluation of the 2005-2008 earnings quality indicators and financial data for those relying on the use of the evaluation quality model, analyze and evaluate earnings quality of the listed company. The study found that in China's auto manufacturing industry, the overall earnings quality of listed companies has improved, but the present trend of polarization, and the earnings quality rankings and the ranking of earnings per share are not consistent. Then use the classical regression model, has carried on the validity check to the earnings quality rating result, confirmed the earnings quality to be able to strengthen the earnings information to the stock income explanatory ability supposition, this article findings to investor's investment decision is useful.Finally, based on the factors that affect the earnings quality of listed companies, make a number of advices and measures to improve the earnings quality of listed companies.