A Study On The Quality And It’s Influence Factors Of Listed Company Management Earnings Forcasts

Accounting goal is to provide decision-making useful accounting information toaccounting information users. It is of great significance for the accounting goal toprovide earnings forecast information of listed companies to the external informationusers. At present the research of the listed company earnings forecast mainly focused onthe overall description of earnings forecast, its economic consequences. There is littleresearch on the quality of earnings forecast. Management earnings forecast in Chinabelongs to half-mandatory. It is very necessary to study the quality (reliability) ofmanagement earnings forecast. In this article, through the combination of theoreticaland empirical methods, analyzing the factors influencing the quality of managementearnings forecast information, finally it is concluded that the factors affects themanagement quality of earnings forecast information, and puts forward somecountermeasures to improve the quality of earnings forecast information.This paper mainly studies the influence factors of management earnings forecaststhat listed company voluntary disclosure. This paper selects the date of earnings forecast,and corporate governance of all the listed company of Shanghai and Shenzhen stockexchange from2010to2012as the research sample. First of all, on the basis oftheoretical analysis, this paper carried out on the sample data and descriptive statistics,it is concluded that the quality of Chinese listed companies’ management earningsforecasts is low. It is difficult for relevant accounting information users to makeeffective decisions. Second, use the research method of multiple regression analysis tostudy the inner mechanism of the factors influencing the quality of managementearnings forecast. This article uses the absolute value of the bias rate between theexpected net profit and the actual net profit to measure the quality of listed companies’management earnings forecast, on the basis of selecting the company size, financialleverage, profitability, audit quality as control variable, establishing multiple regressionmodel, study how listed company governance mechanism and incentive mechanisminfluence the quality of management earnings forecast. Research conclusion is asfollows: corporate governance mechanisms: there is positive relationship between the board leadership structure and the quality of management earnings forecast; there ispositive relationship between the first big shareholder and the quality of managementearnings forecast; here is no significant negative correlation relationship between theboard size and the quality of management earnings forecast; there is no significantcorrelation relationship between the composition of the board (independent directors)and the quality of management earnings forecast quality. Corporate incentivemechanism: there is significant positive correlation between the management monetarycompensation incentive and the quality of management earnings forecast; there issignificant positive correlation between the management equity incentive and thequality of management earnings forecast; the control variables (firm characteristics andaudit quality): there is significant negative correlation between the company’s size andfinancial leverage and the quality of management earnings forecast; there is nosignificant relationship between the audit quality and profitability and managementearnings forecast...