We find that there are some errors in measurement of accruable earnings from the balance sheet by comparing the accrual earnings from the balance sheet with that from the statement of cash flow in theories as well as a single company based on an empirical study.

An Empirical Research of Correlation Value of Accounting Earnings and Cash Flows——Evidences from Shanghai & Shenzhen Stock Markets;

An Empirical Study of Accounting Earnings Conservatism of Listed Companies in China;

Size and Book-to-Market Factors in Earnings:Evidence from the Chinese Listed Companies;

In this paper, by sampling A - share firms listed in Shanghai and Shenzhen Stock Exchanges from 1998 to 2002, the author examines the impact on next year s earnings and next two years stock returns measured by accruals as a standard of earnings quality.

The paper expounds the difference between earnings and cash flow,and put for ward the writer s own view:We should use earnings as primary,use cash flow as necessary supplement when we evaluate a corporation s performance.

Among numerous financial information revealed openly by the listed companies,most of the financial indexes that the investors pay the greatest attention to are close with the accounting surplus.

First, good news firms with income-increasing abnormal accruals have lower ERCs than good news firms with income-decreasing abnormal accruals.

Our main conclusions are:good news firms with income-increasing abnormal accruals have lower ERCs than good news firms with income-decreasing abnormal accruals, bad news firms with income-increasing abnormal accruals have higher ERCs than bad news firms with income-decreasing abnormal accruals;there is an asymmetry with the reaction between good news and bad news(but 200.

In this paper,the authors research the relation between the board of director composition and earnings quality through review the earnings response coefficient(ERC).