Company Surplus Quality Evaluation and Empirical Analysis

Author: Cheng Xiaoke
Publisher:
Publish Date: 2004-03-01
Features: Corporate earnings have become a focal point in the current capital market. Common indicators in the stock market, such as earnings per share (EPS), return on equity (ROE), and price-to-earnings (P/E) ratio, are all constructed based on net profit and other earnings-related data. In recent years, major stock market cases in the capital market have consistently been linked to profit manipulation or earnings management, leading to skepticism about the authenticity and reliability of earnings data. Against this backdrop, researching the quality of corporate earnings has become inevitable. Accordingly, this book analyzes and examines the quality of corporate earnings from the following four major categories: (1) the predictive value of earnings; (2) the structural nature of earnings; (3) the persistence of earnings; (4) the timeliness of earnings. Among these, key topics of this textbook include: "Earnings Quality Analysis Based on Cash Flow," "The Information Content of Accounting Earnings," "Examining Corporate Earnings Quality from the Perspective of the Income Statement," "Comprehensive Income: An Extension of Traditional Accounting Income," "The Value Relevance of Economic Value Added (EVA)," "Earnings Persistence and Measurement," and "Earnings Disclosure Frequency, Timeliness, and Market Response." Additionally, as earnings management behavior characterized by "top-down policies and bottom-up countermeasures" is one of the primary factors affecting corporate earnings quality in China's emerging capital market environment, this book also focuses on discussing the relationship between earnings management and earnings quality.