Sustained Earnings Growth,Sustained Revenues Growth and Earnings Quality

This paper selects listed firms with 5-year sustained earnings growth as main sample,which is divided into S group and NS group based on whether there is 5-year sustained growth in revenues.This paper constructs an evaluation system,synthetically evaluating earnings quality from the four aspects of earnings persistence,value-relevant,cash flow relevant earnings and in-time announcement of earnings.The result of study indicates that the companies with sustained increase in earnings have higher earnings quality than other compa- nies,and eamings quality is highest when sustained increases in earnings are supported by sustained increases in both revenues.