Study On Quality Of Earnings In Real Estate Industry

The real estate industry is closely related to people’s livelihood,as a pillar industry of the national economy,it huge profits have also been the focus of widespread attention.Benefits are closely relate to creditors,investors,government regulators,and so on,at the same time,income is also one of the important accounting information of an enterprise,which has also become the focus of attention.However,people focus only on the amount of earnings,but ignore the quality of earnings.The quality of earnings can provide more scientific and comprehensive information for information users,and improve the rationality of economic decision-making.Based on the above reasons,this paper considers that it is of practical value to study the quality of earnings of the real estate industry.This paper selects the data of 72 listed real estate enterprises as samples.First of all,starting from the six characteristics of the security,cash security,stability,sustainability,growth and reliability of the quality of earnings of the real estate industry,this paper finds out the basic latent variables measuring the quality of earnings based on the idea of structural equation modeling,finally,the paper selects 16 measurable indexes to describe and support the latent variables.And,then the paper establishes the income quality measurement model of the real estate industry,and the model is fitted and corrected,it is proved that most of the selected indexes are reasonable;secondly,the influences of the corresponding latent variables to the six characteristics of quality of earnings gained from measurement model results on the quality of earnings are different,among them,in addition to reliability benefits,sustainability is one of the most important characteristics of the quality of earnings,and the stability,security and cash guarantee are positively related to the quality of earnings,and the later two are inseparably interconnected;once again,the measurement results are analyzed,whichdemonstrates the model usefulness;finally,this paper selects three representative listed real estate enterprises for empirical analysis,and then the paper puts forward countermeasures and suggestions for improving the quality of earnings of real estate industry based on final scores of the quality of earnings and the overall industry status.