Empirical Study On The Earning Quality Of Listed Commercial Banks In The Shanghai And Shenzhen Stock Exchange

As an important parameter of stock market supervision, accounting earnings of listed company possess significant decision value to investors, creditors and managers. Since earnings became the signals of companies operating conditions, financial fraud such as earnings over-management like the shadow following the companies. Study on earnings quality because of its different investigation and research methods, the views are also different. Foreign academic circle on the earnings quality research started early,involved field broad. In contrast, study on earnings quality in china fell behind abroad. Though commercial bangks occupy important position in national economy, study on earnings quality refers to almost all industry except bangking. Therefore, during the study, regarding listed commercial banks in the Shanghai and Shenzhen stock exchange as the research object, based on the support of empirical work designation, used the standard analysis, comparative analysis and empirical analysis, then researched the earning quality of commercial banking from the value relevance of earning quality angle.The main content: firstly, introduced the background of subject, based on general analysis of definition and achievements of accounting earnings quality home and abroad, the author put forward new views. As well, stated the characteristics of commercial banking and earnings quality, analysed the evaluation and calculation of earnings quality. On the basis of the value relevance of earning quality theory, put forward two hypotheses and built model. Then, the study chose 14 commercial banks as research sample, adopted related financial report data in 2007, 2008 and 2009. After obtaining proxy variables of earning quality through Jones model, took the proxy variables into price model to research the relation between stock price and quality of earnings. The results showed, the earning quality of commercial banks in the Shanghai and Shenzhen stock exchange were positively correlated with stock price, the explanation power of earnings of commercial banks in the Shanghai and Shenzhen stock exchange increased before joining earning-quality variable.