| Accounting earning is the primary information provided by financial statements,and is a symbol of specific forms and profitability of a company’s value-added.When Earnings play role in the company’s valuation or contract,it’s persistence of high long been seen as a desirable feature.There are inextricably link between earnings and the value of the company.Earnings persistence is an important concept of capital market investors in securities pricing,This makes earnings persistence be a hot topic studies in home and abroad for nearly 30 years of capital market research.Foreign scholars held Discussion on earnings persistence from multiple perspectives,and achieved great achievements.Domestic scholars also discussed on earnings persistence from multi–directional,And consider a number of variables and institutional background that the foreign studies hasn’t,but there is still a lack of breadth and depth.In this paper we study accounting earnings persistence issues with industries and companies stratified perspective,which compared to the previous earnings persistence more macro.This paper using a more direct economic’s Perspective to study accounting issues,and realize mixed interdisciplinary research.Through research,we obtained the following conclusions:The first,the company’s earnings persistence is better than the company’s earnings persistence,and investors in the market did not identify the differences between the two parts.Second,the homogeneity of the industry’s industrial surface and corporate earnings persistence are better than heterogeneous industries.Third,investors’ underestimation of the persistence of earnings on the industrial side existed in both the profitable and loss-making companies.While dealing with loss-making company,investors overestimate the persistence of their corporate earnings compared with earnings companies to be more intense;Fourth,the paper finds that the cash flow of the industry is the most persistent and the firm’s profitability is the weakest.The paper’s innovation is the perspective of the study is more macroscopic,and taking into account the industry heterogeneity factors and studying the earnings loss samples,compared to the existing domestic research on the persistence of earnings. |
