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With perfect capital markets in China, the income is an important financial information of listed companies, also is the focus what investors, creditors, and stakeholders pay attention to. Earnings quality can evaluate the consolidated results of listed companies, and is an important reference. Under the national context of information technology to stimulate industrialization,electronic information technology industry has a strategic, fundamental position, and it can effectively upgrades its economic structure and upgrading of other industrial competitiveness, and in the capital market, the electronic information industry average of market value is far higher than its carrying value. Investment risks is large, the search of earnings quality of electronic and information technology industry has a very far-reaching significance.In this paper, combined with the characteristics of electronic and information technology industry, the profitability of that revenue, that is growth, reliability, income, innovation, sustainability, safety and stability properties, fully integrated reveal the quality of listed company earnings. This paper selected 28 observed variables on the financial indicators as quantitative analysis of the properties. PLS path modeling method, based structural equation, can handle complex relationships between factors, and can calculate the latent variable scores and other unique advantages, provides a good way for the purpose of earnings quality analysis. Combination of the above theoretical analysis and the principle of index system, initial PLS model point is constructed to measure.This article selected from 2007 to 2009 in China in the Shenzhen Stock Exchange and Shanghai Stock Exchange for three years a total of 132 samples of data, through the initial point model checking, fitting, modified and eventually established 15 financial profitability indicators as income, growth, reliability, innovation, cash potential variables’observation variables, and set up the point measurement model of earnings quality for electronic and information technology industry. The point model obtained three-year latent variable scores of the listed companies.using point model’s latent scoring.The paper constructed dynamic measuring model and latent variable growth model for revenue forecasts and trend analysis. The results show that the benefits of electronic information industry is volatile, and most of the selected indicators can be effectively measured, and the five attributes derived latent variable impact on the quality of earnings from strong to weak as follows: profitability, reliability , growth, cash, innovation.In order to verify the measurement system is scientific, the paper selected the listed companies of UFIDA and Coship to test the conclusion. The result show the earnings attributes are testability and the models are effectively.
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