The Research Of Earnings Quality Of Listed Companies Under The Financial Crisis Environment

The outbreak of the subprime crisis in April2007as an unprecedented financial "tsunami" caused a huge blow on China’s financial economy and the real economy. According to the data analysis, the loss number of all of A-share listed companies, state-owned listed companies and private listed companies were229,145,83and the loss rates were15.15%,15.81%,14.12%respectively in2008. Compared to the previous2007, the loss number was increased127,57,43, and the loss rates were increased by8.16%,9.16%,6.83%respectively. These figures indicate that the outbreak of the financial crisis caused a serious impact on the normal production and operation of China’s Listed Companies. Based on the above background, we study the changes of earnings quality of listed companies, and the differences between state-owned listed companies and private listed companies in the financial crisis environment. This paper selects the year of2006-2012in Shanghai and Shenzhen A-share listed company’s data as the research sample, and we apply the modified DD model to the measurement of the earnings quality of listed companies. And we verify different earnings quality of state-owned listed companies and private listed companies by the regression models. The results showed that:in2007(pre-crisis),2008(crisis period),2009-2010(stimulation period of government policies),2011(slow recovery period of the economic), the earnings quality of listed companies has experienced a trend from high to low and then restoration. After the outbreak of the financial crisis, the earnings quality of state-owned listed companies is improved, while the earnings quality of private listed companies is reduced. The earnings quality of state-owned listed companies is higher than private listed companies under the financial crisis environment. According to the conclusions, the paper makes relevant recommendations on the improvement of listed companies’earnings quality, and the decision-making of investors and government regulatory.