Blue-chip Listed Company Earnings Quality Research In Our Country

Blue-chip listed companies usually have a large scale, high profit and strong comprehensive strength which is represented by steel, petroleum, aerospace and other industries in our country. However, these companies on the capital market do not perform well, the company’s shares have been in the doldrums. Why does this phenomenon happen? The occurrence of this phenomenon is due to our country capital market failure or the blue-chip listed companies "for nothing"? Blue-chip listed companies in our country is famous for the quantity of its earnings, how about the enterprise value? Are blue-chip listed companies glamorous financial figures hidden behind the behavior of earnings manipulation? And what are the factors that affects the quality of their earnings? The thesis will start a research on the basis of the above problems, to find out if the earnings information of the blue-chip listed companies can be trusted, and how to improve the quality of the company’s surplus by strengthening corporate management.First this thesis researched the earnings quality of blue-chip listed companies using modified Jones model by the method of combination of norms and empirical research. Studies have shown that the blue-chip listed companies generally has carried on the earnings management and the quality of the company’s earnings really have problems. Then, the article studies the quality of earnings from the aspect of ownership structure, board characteristics and management incentive on the basis of the above research results, and carries on empirical analysis to the above factors. The results of the empirical analysis are:in the aspect of the company’s equity structure, The ratio of the first largest shareholder and shares of institutional investors have significant correlation with corporate earnings quality; in the aspect of board characteristics, the independent directors proportion and the number of directors have significant correlation with corporate earnings quality; in the aspect of management incentive, the number of compensation management and total compensation have significant correlation with corporate earnings quality.At last, based on the results of empirical research on earnings quality of the blue-chip listed companies in China, this thesis puts forward feasible suggestions for blue-chip listed companies on how to improve the quality of earnings.