In particular,the earnings response coefficients for earnings announcements surrounding a restatement exhibit a U-shaped pattern in which they return to pre-restatement levels over an average of two quarters;In addition,investors have response to temporary disclosure of accounting errors and the information content of earnings declines in periods following core earning errors.

Based on the accounting information disclosure model under China\'s new accounting standard,this paper analyzes earnings structure of companies,builds up a system of evaluating the quality of earnings structure on top of core profitability,tests the validity of the system by factor analysis on the data of China\'s A share listed companies in manufacturing industry from 2006 to 2008.

We consider the character of surplus and drive a theorem with ruin probability and obtain a inequality.

The recursive expressions of the joint distribution of surplus before and at bankruptcy and the maximum surplus before bankruptcy are obtained.

In compound binomial risk model,a martingale method is used to compute the distributions of the first and last time of the surplus process at a given level.

In the model, equity value is an increasing function of earnings, its relationship with book values depends on the firm s operation efficiency.

So we assume that the relation of unexpected earnings and unexpected stock returns is nonlinear.

Based on a data set of up to 1,232 announcements, we find that unexpected earnings, proxied by earnings changes, are positively related to abnormal returns, which shows that earnings a.