The Impact of Asset-Based Indicators on Operating Income: An Empirical Study for the China Telecommunication Listed

Author(s)

Nijun Zhang , Lili Wang , Yuezhen Wang ,

Download Full PDF Pages: 115-119 | Views: 1000 | Downloads: 328 | DOI: 10.5281/zenodo.3484287

Volume 7 - June 2018 (06)

Abstract

This essay takes 19 listed communication companies as the research sample, trying to explore the correlation coefficient and correlation between the assets financial indicators, intangible assets and operating income. Through regression analysis, the author finds that the total asset turnover ratio and total assets net profit are positively correlated with revenue. Furthermore, the effect is significant. Compared with the 19 listed companies’ financial statements of 2015 and 2016, the total assets of 17 companies have increased significantly, but the total assets net profit and total asset turnover ratio of 16 companies have significantly decreased. Therefore, the hypothesis is that companies make use of earnings management through overstated assets, but the overstated assets cannot generate real revenue, and lead to the companies’ total assets turnover ratio declined.

Keywords

Listed communication companies, Assets financial indicators, Revenue, Empirical analysis, Earnings Management

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