The Research on Measuring Determining and Evaluating Framework of Management Pro Forma Financial Information in China

Since China's capital market is facing the "emerging & transition" development environment, as the share-split structure reform is gradually improving, the confidence of investors of listed companies is slowly restored. Therefore, improving and perfecting the system of information disclosure of listed companies be one of the most important tasks to restore the credibility and revive the market. Certainly, historical financial statement may also help an investor assess an entity's future cash flow and investment value, but much attention has been directed to measurement and disclosure of pro forma financial information. This professional information may take the form of forecasts, projections, feasibility studies and others. This paper is devoted to empirical research to examine. On the basis of extraction from domestic and foreign literatures - earning forecast model, which reveals some variables to predict the prospective financial information measurement, it develops forecast antecedents, characteristics, consequences and uncertainty & risk determinants framework. Beginning by descriptive analysis of listed companies in China for nearly four-year samples of these variables, and through factor analysis, non-parameter test and multivariate regression model for the analysis and empirical testing, it certifies pro forma financial information measuring determining and evaluating framework, and takes its utility.