Conference proposal

In this day and age, with the financial market completed, there are many new types of business companies, such as guarantee corporation. Some of the firms are required has a guarantee when they loaning from the bank, and due to the fact that many people or firms do not have enough credit to be a guarantee. Then, the guarantee corporation was arising. However, when theses firm making a decision, they need to assess the borrower’s debt-paying ability and the value of assets by earnings quality which is an analytical data from the financial statement, and this process is the key point for the guarantee firms (Sohn & Kim, 2013). Nevertheless, according to Li (2014), the public company’s financial reporting quality is far higher than the unlisted firms which are the main target customer of guarantee firm, and due to the fact that the unlisted firms do not need to file the public report, so they easy to manage their earnings and disclosure information. In other words, although the guarantee corporation relies on financial reporting, they also need to pay attention to the other elements which could affect their assessment.

Earnings quality deserves to be studied as an important financial information when the investor, government, or guarantee assesses a company (Muttakin et al., 2015). In addition, there are many elements could influent the quality of earnings, such as earnings management, corporate social responsibility (CSR), and audit. Hence, how do these elements affect the earnings quality? And which element should the guarantee firm focuses on? Despite the fact that there are many pieces of research about the relationship between these elements and earnings quality, few study about the elements should the guarantee company consider when they assess the borrower. Therefore, I would research many relate articles to analyze the relationship and impaction of elements like the CSR to earnings quality, and obtain some conclusion or advising for guarantee company. This article would be useful for guarantee company when they assess and also have an understanding of the relationship between different elements which could affect the earnings quality. For researchers, they would receive many information about earnings quality and the assessment process of guarantee firm which has less research studied..

Reference List

Sohn, S., & Kim, Y. (2013). Behavioral credit scoring model for technology-based firms that considers uncertain financial ratios obtained from relationship banking. Small Business Economics, 41(4), 931-943.

Li, Shaomin (2014). How much can we trust the financial report? Earnings management in emerging economies. International journal of emerging markets, 9 (1), p. 33 – 53.

Muttakin, M. B., Khan, A., & Azim, M. I. (2015). Corporate social responsibility disclosures and earnings quality: Are they a reflection of managers’ opportunistic behavior?. Managerial Auditing Journal, 30(3), 277-298.