Title :
Determinants of earning persistence based on implied terminal value estimates of EBO model: Evidence of listed companies of China
Author :
Jingqi, Zhang ; Weidong, Meng
Author_Institution :
Coll. of Econ. & Bus. Adm., Chongqing Univ.
Abstract :
After calculating the implied terminal value of every shares at different periods, this paper analyzed the determinants of earning persistence and finds the following results: (1) The market share and capital structure have significant positive effects on the earning persistence, which proves the correctness of agency theory. (2) Firm size and investment have significant negative influence on the earning persistence, which means the efficiency of investment to be improved
Keywords :
investment; organisational aspects; share prices; China; EBO model; agency theory; capital structure; earning persistence; firm size; implied terminal value estimates; investment; listed companies; market share; Companies; Econometrics; History; Integrated circuit modeling; Investments; Marketing and sales; Profitability; Size measurement; Stock markets; Time measurement; EBO model; Earning persistence; Implied terminal value; listed companies;
Conference_Titel :
Service Systems and Service Management, 2006 International Conference on
Conference_Location :
Troyes
Print_ISBN :
1-4244-0450-9
Electronic_ISBN :
1-4244-0451-7
DOI :
10.1109/ICSSSM.2006.320790
