Empirical analysis on construction and real estate about affecting factors of earnings quality

On the basis of theoretic analysis of the earnings quality and its affecting factors, this paper use Principal component analysis to construct a synthesis appraisal model to measure listed company's earnings quality, listed companies of the trade of construction and real estate are sample companies. According to this model, the synthesis marks of sample companies' earnings quality are obtained. Then, the factors which may affect the earnings quality and the factor representing the earnings quality are combined together to make analysis of correlation and analysis of regression. The empirical research indicates that income per share, price owner's equity ratio, asset to liability ratio have prominent affection on listed companies' earnings quality in the trade of construction and real estate.