Study on The Influence of The Quality of Financial Statements on The Valuation of Enterprises

Ruixin Duan(Northeast Securities Co., LTD., China)

Abstract

As a reflection of economic activities of enterprises, the quality of financial statements has an important impact on the accuracy and reliability of enterprise value assessment. This paper studies the concept of the quality of financial statements, the impact of the quality of financial statements on the valuation of enterprises and how to improve the quality of financial statements. Firstly, through the definition and connotation of the quality of financial statements, the characteristics of high-quality financial statements should be clarified. Secondly, it analyzes the influence mechanism of the quality of financial statements on the enterprise value assessment, and discusses how the quality of financial statements affects the accuracy and reliability of the enterprise value assessment. Finally, combined with empirical analysis and case analysis, this paper puts forward specific countermeasures and suggestions to improve the quality of financial statements, including improving the internal control system, strengthening financial management, improving the quality of accounting personnel and strengthening audit supervision. The research results of this paper are helpful to improve the quality of financial statements, so as to improve the accuracy and reliability of enterprise value assessment.

Keywords

financial statement quality; Enterprise value assessment; Influence; enhance

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DOI: http://dx.doi.org/10.26549/jfr.v7i1.15871