Research On Earnings Quality Evaluation Of Taigang Stainless Company Based On BP Neural Network

At current,the accounting system of enterprises is still not perfect because Chinese capital market starts late,which causes enterprises’ managers to reduce earnings quality and even provide false accounting information for personal gain.A company operating conditions is mainly reflected by earnings generated in its business process,hence,the evaluation of earnings quality is paid more attention by scholars and companies’ stakeholders,especially steel industry.In recent years,the steel industry is facing the conflicts of industrial structure,technical rigidification,over capacity,energy conservation arid environmental ’protection,which make the evaluation of earnings quality be concerned by Steel Corp’s managers,creditors,investors and other stakeholders.As a whole,TISCO presents a new normal state of low growth,low price,low benefit and high pressure whose situation is extremely severe.Therefore,in the background of the doubt about the earnings quality of Chinese enterprises and the continuous declining of the steel industry’s benefits in recent years,there is no doubt that it is an important and urgent research to make a real,reasonable and accurate evaluation of the earnings quality of TISCO.TISCO is different from other industries in its operational process.For example,they are characterized by high investment,capital intensive,complex production process,great influenced by technology,large negative impact of production on the environment,and financial and industrial risks.The evaluation of Earnings quality evaluation index system is directly based on the characteristics of earnings quality and financial index evaluation model constructed by financial statements,however,it is hardly based on the different operational characteristics to choose the target evaluation index.In view of the above problems,this paper is on the basis of the characteristics of earnings quality and comprehensively considers the influence of TISCO’s operational characteristics on the characteristics of earnings quality to integrate into the non financial index when it constructs the index system of the evaluation of earnings quality.This paper is based on the research on the connotation,characteristics and influencial factors of earnings quality to study the operational characteristics of TISCO after field investigation.Based on the characteristics of earnings quality,this paper analyzes the impact of the company’s operating characteristics on earnings quality characteristics and the current situation of earnings quality evaluation in-depth,and constructs a framework of index system of the evaluation of earnings quality of TISCO.It builds an earnings quality evaluation index system based on the characteristics of earnings quality,comprehensive financial indicators and non-financial indicators from the perspective of Finance and non-financial,earnings and surplus investment,including 22 three level evaluation indicators.What’s more,based on this,the BP neural network is used to establish the evaluation model of the earnings quality of TISCO.Last but not least,it calculates the weights of the 22 indicators and make comprehensive evaluation of the earnings quality of TISCO in terms of the establishment of TISCO’s evaluation model of earnings quality,which provides a valuable reference for stakeholders.