The Value Quality Evaluating Model of the Listed Companies under the Background of Accounting Information Distortion

This Information asymmetry of capital market can cause accounting information distortion and mislead the performance evaluation of listed companies. We addressed the definition of earnings quality and proposed the evaluation method and key techniques of its four dimensions: authenticity, stability, risk, and Sustainability. With many evaluation techniques and on the basis of FAHP method, we developed a four dimensions model and discussed earnings quality by taking the listed companies of, electric power industry in 2005 as examples.