Research On Earnings Quality Of DJ Packaging Co., Ltd

With the development of our country’s economy,more and more enterprises make use of financial statistics to make economics decisions,including statistics of accounting earnings.To achieve certain purposes,some enterprises would manipulate accounting earnings statistics,resulting in decrease in the reliability of accounting earnings information.Therefore,the importance of the study in accounting earnings quality is self-evident.The analysis of earnings quality can help the information users know about the true profit-making ability of the enterprises so as to evaluate the performance of the enterprise managing board and to provide reference for economics decision making.In the meanwhile,it can help them detect the problems in enterprise management process,so as to provide the enterprises with suggestions for improvement,enhance their managing ability,and hence facilitate the development of the enterprises.In this study,we took a private company corporation—DJ Packaging Company Limited—as an example.Sixteen financial indicators,based on the Company’s statistics and the operating state from 2013 to 2017,were selected to analyze its earnings quality from the perspectives of the Company as well as the whole industry.Furthermore,we analyzed the Company’s earnings quality from the angle of non-financial indicators by using the PEST and SWOT analytic methods.On these bases,problems of DJ Packaging Company Limited’s earnings quality were identified and causes were explored,and related suggestions for improvement were quality of the DJ Packaging Company Limited as well as non-listed companies.