Abstract Earnings quality is the level of earnings of the advantages and disadvantages. Surplus of corporate reporting, the accounting officer under the provisions of accounting standards and systems, to conduct business in a certain accounting period to confirm the various operations, measurement of results. Some enterprises in order to obtain credit funds, commercial credit, company listing, to maintain allotment status, tax evasion and other reasons, will gloss over the accounting statements, adjusted earnings, therefore, how to analyze and identify the pros and cons of corporate earnings quality level, investors, creditors, and the majority of government departments and other users of accounting information concerns. Companies with higher earnings quality has the following characteristics: continuous conservative accounting policy, the policy of the company's financial position and net income of confirmation is prudent; income and by the frequent occurrence of basic business-related transactions in the company brought; accounting reflect the conversion of sales into cash quickly; net income levels and growth is not dependent on changes in tax laws; corporate debt levels are appropriate, and enterprises do not use it to carry out the capital structure of earnings manipulation; stable, predictable to reflect trends in the level of future earnings. He also pointed out: earnings quality, and not only to gain an element of the characteristics of financial activities and operations level would be arranged in order of earnings quality have an impact, such as: operating leverage, financial leverage, liquidity, industry factors, In addition, the economic environment , tax policy, accounting policy, the user is to decide on the purpose of earnings quality and other important factors. Keywords Enterprise Earnings Quality Earnings Management Factors
