The Study on Setting up the Evaluation Model of the Listed Companies' Earning Quality

Earning is one of the most important accounting information disclosed by the enterprises, particularly in the capital market environment, as well as the medium-term annual earnings figures in the report are one of the most important information transferred by listed companies to investors. Now in financial theory, the assessment models often predict and analyze a company's value based on accounting earning. Therefore, the accounting earning is one of the most intuitive targets to reflect on business' operating results for a certain period, which has been widely considered as high information content. But how to appraise the earnings quality specially the quantitative evaluation is really difficult in practice. Therefore, this article constructs the quantitative evaluation model of earnings quality from the characteristic of the earnings quality definition as well as the earnings quality. And studies trend of earnings quality of the Listed Companies through listed companies' empirical data.