Based on deep analyzing the colluding and checking relation of income statement and cash flow statement, this paper chooses and designs the corresponding profit index, carries on the comparative study of information c...Based on deep analyzing the colluding and checking relation of income statement and cash flow statement, this paper chooses and designs the corresponding profit index, carries on the comparative study of information content between accounting earnings and cash flows. The paper utilizes the financial data of Chinese listed company in manufacturing industry from 2003 to 2005, adopts the price model and analyzes empirical study about two kinds of profit indexes and value relevance. Studies have suggested： accounting earnings and cash flows all have relevant relations to stock prices; however, the relevance between cash flow and stock price is stronger, and cash flows have higher information quality.展开更多
This study investigates whether accotmting earnings can predict future Gross Domestic Product （GDP） growth within China＇s institutional settings. Konchitchki and Patatoukas （2014a） find that accounting earnings i...This study investigates whether accotmting earnings can predict future Gross Domestic Product （GDP） growth within China＇s institutional settings. Konchitchki and Patatoukas （2014a） find that accounting earnings is a significant leading indicator of GDP growth for the next three or four quarters. We conjecture, however, that earnings management would weaken such predictive power for accounting earnings because it distorts earnings from real corporate profit. As earnings of Chinese firms are more seriously manipulated than those of US firms, this study finds that earnings of Chinese listed firms can only predict GDP growth for a single quarter. We further decompose accounting earnings into operating cash flow and accrual earnings and find that operating cash flow which is less affected by earnings management has better predictive power for GDP over the longer horizon of the next three quarters, but accrual earnings can only predict GDP growth for the next quarter.展开更多
Based on the principle of cost-benefit and comprehensibility of the design of accounting earnings quality, this paper establishes a single evaluation index from four aspects： persistence, cash security, growth and sa...Based on the principle of cost-benefit and comprehensibility of the design of accounting earnings quality, this paper establishes a single evaluation index from four aspects： persistence, cash security, growth and safety, and sets out the comprehensive evaluation of accounting earnings quality The index evaluates the quality of accounting earnings.展开更多
文摘Based on deep analyzing the colluding and checking relation of income statement and cash flow statement, this paper chooses and designs the corresponding profit index, carries on the comparative study of information content between accounting earnings and cash flows. The paper utilizes the financial data of Chinese listed company in manufacturing industry from 2003 to 2005, adopts the price model and analyzes empirical study about two kinds of profit indexes and value relevance. Studies have suggested： accounting earnings and cash flows all have relevant relations to stock prices; however, the relevance between cash flow and stock price is stronger, and cash flows have higher information quality.
文摘This study investigates whether accotmting earnings can predict future Gross Domestic Product （GDP） growth within China＇s institutional settings. Konchitchki and Patatoukas （2014a） find that accounting earnings is a significant leading indicator of GDP growth for the next three or four quarters. We conjecture, however, that earnings management would weaken such predictive power for accounting earnings because it distorts earnings from real corporate profit. As earnings of Chinese firms are more seriously manipulated than those of US firms, this study finds that earnings of Chinese listed firms can only predict GDP growth for a single quarter. We further decompose accounting earnings into operating cash flow and accrual earnings and find that operating cash flow which is less affected by earnings management has better predictive power for GDP over the longer horizon of the next three quarters, but accrual earnings can only predict GDP growth for the next quarter.
文摘Based on the principle of cost-benefit and comprehensibility of the design of accounting earnings quality, this paper establishes a single evaluation index from four aspects： persistence, cash security, growth and safety, and sets out the comprehensive evaluation of accounting earnings quality The index evaluates the quality of accounting earnings.
