Study On The Correlation Between Earning Quality And Stock Yield Of Listed Companies

With the continuous development of securities market, the increasingly growth of capital market scale and the improvement of investors’ quality, the scale of listed company and pure book surplus are not the main basis for the investment decision of investors. As a link between investors and capital market, investors pay more and more attention to the quality of accounting earnings, therefore, the exploration on the quality of earnings of listed company will be an inexorable trend. In October 2009, the growth enterprises market (GEM) in China officially opened, thus providing a financing platform for high-tech innovative SMEs and making great contributions to the establishment of multilevel capital market. The GEM enterprises, most of which are in growth stage, are characterized by small capital scale and great risks, therefore, the high risks of GEM is a special property different from other main board market and the exploration on the quality of earnings of GEM listed company can indicate the direction for investors. However, as an emerging capital market in the growth stage, the high PE ratio, high share price, high super raise and other abnormal phenomenon of GEM remind us of whether the quality of earnings of GEM enterprises is given full play to the formation of stock price and the research on the correlation of quality of earnings and stock yield is of great significance.First, the influencing factors of the quality of earnings are studied from the concept and features of quality of earnings by normative research and the comprehensive indexes of quality of earnings are constructed by principal component analysis; the theoretical analysis on the correlation between quality of earnings and stock yield is conducted from the influencing factors of stock yield. Then, the current situation of GEM in China is analyzed from the perspective of features of GEM, characterization analysis of the quality of earnings of GEM and drawback analysis of GEM.In the empirical part, the multiple linear regression analysis is conducted for the correlation between quality of earnings and stock yield of GEM listed companies in China by cross-section data analysis and the conclusion that the correlation between quality of earnings and stock yield of GEM in China is not significant is obtained. Finally, the relevant suggestions are offered by analyzing the cause of such phenomenon according to the conclusion, such as perfection of information disclosure system and implementation of delisting system as soon as possible.