Research On The Profitability Of Listed Companies’ Earnings Quality In China

With the constant improvement of the stock market system, losses cause bigger negative impact on listed companies than before. So, a listed company will eliminate the negative impact of the loss and ST system, and will keep the precious shell resources as much as possible. In the case of mismanagement and losses, regulatory authorities may adopt various ways to reduce losses. Avoiding consecutive loss, there profitability of listed companies are probably more earnings management phenomenon, the earnings quality of listed companies has become the focus of attention.Based on the review of surplus quality related research literature at home and abroad, combing the characteristics and influencing factors of surplus quality, than to choose the quality of the surplus after all kinds of evaluation methods, decided to surplus sustained growth, profit ability between the relationship quality as the research train of thought. taking 2013 A-share from-loss-to-profit listed companies as samples, using accrued profits method and multiple regression analysis, firstly demonstrate the behavior that some loss of listed companies manipulate profits to avoid losses, lead to lower earnings quality. Then empirically analyze the earnings quality and earning sustained growth ability of reducing losses of listed companies, comprehensively analyze and evaluate the earnings quality of our reducing losses of listed companies.It shows that reducing losses of listed companies profit most from non-recurring profit and loss, non-core business profits, earnings manipulation may exist, lead to earnings quality is not high, profit growth ability is not strong. it is concluded that there is a positive correlation relationship between them. Finally, combining with the above theoretical research and empirical analysis, reach conclusion and prospect. In view of the problem analysis, make suggestions to improve the earnings quality on losses of listed companies.