Customer Relationship Transactions, External Oversight And The Persistence Of Earnings

Accounting earnings is the summary over the past period of time the results of the operation results,From the perspective of continuing operations,accounting earnings will also help to predict the company's future performance,From the perspective of going concern,the accounting earnings will also help to forecast the future performance of the company and provide basic information for investors to evaluate the future cash flow of the company.Earnings persistence is a feature of steady state of surplus for a long period of time.In recent years,the research on the impact of earnings persistence has been increasing,and many studies on earnings persistence have been based on Sloan's research on earnings persistence,that is,based on the information presented in the financial statements,,The study of earnings persistence from different perspectives,and a large part of them focus on earnings accrual project continued to lower the reasons for less attention to factors outside the financial statements,but in fact,the change of external environment affect the earnings of the firm in different degrees,which affects the earnings persistence.The current economic development is in a transition period,the legal system is not perfect,the market mechanism is not perfect,relationship-based transactions have become the main choice.In order to obtain or maintain a more stable customer relationship,you need to transfer to the customer good financial information,companies are likely to make adjustments of earnings to achieve these goals.The external supervision as the company's governance mechanism,but also impact corporate earnings quality.Based on the study of the relationship between customer relationship transaction and earnings persistence,this paper introduces external governance as the governance mechanism and discusses the impact of the two and their interaction on earnings sustainability of listed companies.In this paper,the domestic and foreign research on the persistence of earnings,customer relationship transactions,earnings persistence and customer relationship transactions,earnings sustainability and external oversight of the study literature were read on the basis of the previous study concluded that the three Relationship.In this article,through screening,get A 10-15 years in Shanghai and shenzhen main board a-share listed company financial data as study samples,Manually collect customer relationship transaction data,through the establishment of the corresponding detection model,The relationship between customer relationship transactions,external oversight and earnings persistence is examined.In this paper,the following conclusions can be drawn from the analysis and research:(1)Customer relationship transactions increase the persistence of earnings;(2)The big four auditing and institutional investor ownership have a positive impact on the relationship between earnings persistence and customer relationship transactions.Based on the study of earnings persistence,this paper introduces two variables,customer relationship transaction and external supervision,and expands related literature.In-depth understanding of earnings persistence will enable companies to improve profitability from different perspectives.A high earnings will help enterprises to add value,maximize corporate value,and stabilize surpluses to help investors make the right decisions.