Study On Relationship Between Internationalization And Quality Of Earnings

As the deepening of global economic integration, more and more entrepreneurs consider international management strategy as one of the major strategies of business development. Through international management, businesses can improve their own productive efficiency as well as enlarge their scale effect. The international management strategy is one way of the business foreign investment, and the evaluation of the management performance of the quoted companies scientifically and reasonably is one of the major problems studied by the current investment theories. Therefore, how to evaluate the business management performance scientifically and reasonably in the implementation of the international management strategy is a problem worth discussing. Many Chinese scholars have already studied the relation between international management strategy and business performance, but most studies evaluated business performance by traditional financial indexes such as net asset yield rate and earnings per-share, while phenomena of manipulating profit out of various purposes in the management process of businesses exist everywhere. Consequently, traditional financial indexes only sometimes can not reflect business performance correctly and reasonably. Therefore, we should pay more attention to the quality of business earnings.After comprehensively analyzing relevant theories and bibliographies of scholars home and abroad, this paper studies the influence of international management strategies and the degree of the internationalization towards the quality of business earnings in order to find out whether adopting international management strategies can improve the quality of business earnings and whether the quality of earnings as well as business information transparency can be improved in the internationalization process as the increase of the degree of internationalization so as to improve investors'utilization efficiency of information of earnings to increase the investors'degree of trust of information business of earnings.This paper studies the influence of international management strategies and the degree of the internationalization towards the quality of business earnings from the perspective of ERC, that is, from the angle of the reaction of investors in stock market. First, this paper introduces relevant theories such as international management strategies, degree of internalization, quality of earnings and ERC and also summarizes the documentaries on these aspects of scholars home and abroad. Then, according to certain standards, this paper chooses manufacturing quoted companies in Shanghai A Shares from 2008 to 2010 as samples, adopts relative financial data, establishes regression models and studies the influence of international management strategies and the degree of the internationalization towards the quality of business earnings. Through the results of regression models, this paper finds out that international management strategies have outstanding negative correlation with quality of business earnings. What's more, the quality of business earnings under different degree of internationalization is different. That is to say, the degree of internationalization also has negative correlation with quality of business earnings, which is not outstanding.