Research On The Evaluation Of Earnings Quality Performance In Securities Industry

In recent years,with the rapid development of our economy and society,the scale of the capital market has been increasing,and there are more and more securities companies as the important financial intermediary.The securities industry is playing a more and more important role in the development of countries and people’s life.However,due to the continuous advancement of financial deepening reform and the increasingly complex world pattern,the development of securities industry faces new opportunities and challenges.In order to better resist risks and seize development opportunities,managers of securities companies should pay attention to the quality of profits as well as the quantity of profits.Therefore,it is of great practical significance to conduct in-depth research on the profit quality of securities companies.This paper takes Industrial Securities as the research object,builds an evaluation system suitable for the profit quality of enterprises in the securities industry,evaluates its profit quality,analyzes the advantages and disadvantages of its profit quality and the reasons,and gives suggestions for optimization countermeasures.In order to evaluate the profit quality of Industrial Securities scientifically and reasonably,firstly,this paper reviews and summarizes the domestic and foreign research literature related to profit quality,and finds that the definition of profit quality at home and abroad focuses on the authenticity of profit,the level of profit,the stability of profit,cash security and the growth of profit.There is only literature evaluation of profit quality from the perspective of cash flow,accounting and profit quality based comprehensive evaluation index system construction.Domestic and foreign scholars believe that the external factors affecting the quality of corporate earnings mainly include industrial competition pattern,national policies and macroeconomic environment,while the internal factors mainly include the level of corporate governance,accounts receivable ratio,corporate audit level,etc.On the basis of fully referring to the existing research methods and ideas,this paper combined with the characteristics of the securities industry and according to the theory of profit quality selection,selected indicators from four aspects of profitability,realization,stability and growth,and constructed a comprehensive evaluation system of profit quality of companies in the securities industry through factor analysis and principal component analysis.The horizontal and vertical comparative analysis is made on the earnings quality of Industrial Securities from 2017 to 2021.The data analysis results show that Industrial Securities performs well in the comprehensive score of earnings quality obtained by the principal component analysis method,indicating that the overall earnings quality of Industrial Securities is high,but the advantages and disadvantages of Industrial Securities are different in the four aspects of profitability,realization,stability and growth.The specific research conclusions and countermeasures are as follows:the profitability of the profit quality of industrial securities needs to be improved,and the income level decreases due to the intensification of industry competition and policy changes.The profitability optimization countermeasures include paying attention to cost control to improve the profit transformation level and following the policy changes to seize development opportunities;The stability of the profit quality of Industrial Securities is weak,and the proportion of non-recurring profit and loss is too high.The stability optimization strategy is to focus on the development of main business and improve the proportion of recurring profit and loss.The profit quality of Industrial Securities is not enough to grow,the company continues the traditional development mode,the R&D investment is too low and the innovation ability is insufficient,the growth optimization strategy is to innovate technology to achieve differentiated development,optimize the asset allocation structure,layout of non-directional business,etc.Industrial Securities has a good earning quality,but it still needs to continue to maintain and try to improve.The promotion strategy is to continuously improve the accounts receivable management system to optimize the level of cash collection.The research on the profit quality of Industrial Securities in this paper aims to deeply understand the status quo and evaluation methods of the profit quality of companies in the securities industry,so as to evaluate Industrial Securities and provide theoretical reference for enterprises in the securities industry to improve the profit quality and achieve long-term,stable and sustainable development.