Research On The Relationship Between Earnings Persistence And Market Value

With the continuous development of Chinese capital markets progress, quality of accounting information as well as a stable investment returns has become a focus of investor attention.Accounting earnings information as an important component of Accounting information quality, attracted widespread attention.However, due to accounting earnings information content of complex, often because of accounting earnings information interpretation of the deviation caused by bad investments, so it is necessary for depth study of the characteristics of accounting earnings and the quality of earnings information,in order to obtain the value of investment information.Accounting earnings persistence is an important component of earnings quality. In this paper, self-sustained earnings and earnings persistence of market value relevance of both to Chinese A-share listed companies as samples for empirical research.This study is as follows:First, establish different research models, use different indicators of surplus, the surplus continued to study the problem of existence; second model using the cumulative abnormal returns of the market value of the surplus continuing relevance.This study to obtain a more reliable conclusions:first, that Chinese A-share listed company's earnings sustainability is an objective reality;Secondly, through the value-related research, confirmed persistent surplus in the short term correlation with market value; once again, through the different indicators of the sustainability of earnings compared to a surplus that different indicators of sustainability is different, and the value relevance also different.To sum up, as gradually regulate of the chinese securities market, on the one hand listed companies will disclose accounting earnings including more information content; others, investors' determination of the accounting earnings information will be more rational.