Empirical Research on Earnings Quality of China´s Listed Companies Based on Main Component Analysis Method

The Earning´s quality of Listed Companies is one of the focus questions for accounting information user, it is very important that studying how to analyze and evaluate it. This paper choose 24 Shanghai and Shenzhen-listed manufacturing companies in 2010 as research objects, analysis from authenticity of the profits, collectibility, the continued stability and growth, determine an index system composed of 10 indicators for profitability quality evaluation, drawing on various domestic and abroad index selection and evaluation methods. Then, the paper use principal component analysis methods, give the overall ranking of listed companies in Hebei Province, and analyze their status and development situation in the industry. Finally, combined with the above analysis, the paper makes some suggestions on how to improve the quality of listed companies.