Research On Earnings Persistence Of Chinese Listed Companies Of Manufacturing

With the continuous development of China's securities market, accounting information's quality and a stable return on investment has become a major topic of concern. The accounting earnings as an important vector of the quality of accounting information, they are valued by many investors. Earnings persistence is an important feature of accounting earnings; it can effectively create a relationship between earnings of different period, and also can ensure the information based on the available earnings to effectively predict the future earnings. Therefore, we make the earnings persistence as the main object of study in this paper, then further study of the earnings persistence's influence on the model of earnings forecast, and the impact of the information of earnings forecast on stock price.This selected financial data of listed companies in China's securities value of earnings related to three areas of empirical research. First, we take the earnings persistence for the study. Then taking into account the manufacturing market existed for the longest time, has distinctive features and the large number. So we focus on China's stock market listed companies in the manufacturing industry to analyze the characteristics of accounting earnings. Select the earnings coefficient of variation of earnings persistence as the characterization of variables, we first examine the different sectors of earnings persistence, and then do a brief comparative analysis. Then, we further examine earnings persistence on the impact of earnings forecasts. In this section, we use the earnings coefficient of variation of earnings persistence as the characterization of the variable, add it in to the earnings forecast naive model, and then we examine earnings persistence's impact on earnings forecast. Finally, by regression analysis, we continue to study the market value of the forecasted surplus. In this section, using the earnings forecast model with earnings persistence, and calculate the future earnings using current earnings data and earnings persistence data, we use our adjusted model calculate the forecast earnings of t+1 period, and study if it have effect of the stock price.