Foundation And Application Of The Earnings Quality Evaluation Index System About Construction Enterprises

The long-term fierce competition in the construction industry and the backward production management methods have led to low profit margins in the industry.The operating results have gradually attracted the attention of various stakeholders.However,the traditional accounting profit indicators can only analyze the amount of profits from the perspective of financial results,and can not identify the risk hidden danger and true quality behind the profit from the formation process of profit,profit structure and profitability of profit results.The construction industry has the characteristics of tight capital chain,unsynchronized income and cash flow,high production risk coefficient,construction qualification and technology research and development are particularly important for business growth,resulting in the true quality of profits not as beautiful as the book,so how to comprehensively evaluate the earnings quality of construction enterprises from the aspects of financial and non-financial,process input and result output has become the concern of external information users.Based on this,the research question in this paper is how to construct an earnings quality evaluation system suitable for construction enterprises.The difference between this study and the existing research is:(1)On the research object,the specific industry of the construction industry is selected to improve the pertinence and applicability of the evaluation system;(2)On the selection of evaluation indicators,combining the characteristics of the construction industry,this paper selects the payout ratio to measure the impact of comprehensive paying capacity on profitability,and includes input and non-financial indicators such as safety education and training input,technology research and development investment,construction qualification,etc.,and improves indicators according to the criteria to make the evaluation system more comprehensive and forward-looking;(3)On the research methods,empirical and case studies,the empirical and case studies are combined.The factor analysis method is used to construct the model,and the validity of the model is tested empirically.At the same time,the model is applied to the industry earnings quality evaluation and case analysis to improve the application value and reasonableness of the evaluation system.The research ideas of this paper are as follows:Firstly,based on the concept of earnings quality and the influencing factors,combined with the defects of the existing system,the characteristics of the construction industry and the changes of new accounting standards,the earnings quality is measured from six dimensions,and fourteen indicators targeted selection is made.Using factor analysis method and the data of listed construction companies from 2015 to 2017,we construct a comprehensive evaluation model of earnings quality,and empirically test the effectiveness of the model.Secondly,apply the evaluation model to the overall earnings quality evaluation of the industry and the specific case enterprise earnings quality evaluation and compared with the original system indicators to verify the operability and rationality of the evaluation system.The research findings of this paper are as follows:(1)Combining the characteristics of construction enterprises and the changes of accounting standards,the comprehensive evaluation system of construction enterprises' earnings quality is constructed and the effectiveness is tested empirically.(2)The degree of influence of each individual ability of the construction enterprise on the comprehensive score is:safety,profitability,sustainability,liquidity and growth.(3)The overall earnings quality performance of the construction industry is acceptable,but the growth and cashability performance is poor.The earnings quality and net profit ranks are quite different.The state-owned enterprises' earnings quality is better,and the growth is significantly higher than that of private enterprises.(4)Based on the results of case application,the current situation and reasons of the earnings quality of Zhongnan Construction were analyzed,and the commonly used indicators in the existing research are compared to further verify the operability and rationality of the evaluation system.