초과이익지속성과 보수주의회계 및 경제적 특성과의 관련성

This study empirically investigates the relationships between earnings persistence and both economic determinants of persistence and conservative accounting factor. Earnings persistence is generally defined as the revisions in expectations of future earnings induced by the current-period earnings innovation. Whether persistence measures are related to characteristics of the firm's economic environment or not is important for the users of accounting information, expecially investors and analysts. The empirical results can be summarized as follows: First, industry abnormal earning persistence increases with industry concentration, industry level barriers to entry, and industry conservative accounting factors. Second, firm abnormal earning persistence increases with market share, firm size, firm level barriers to entry, and firm conservative accounting factors. This study contributes to the valuation literature in two way: First, extending prior research, including Lev(1983) and Baginski et al.(1999), this paper studies both the persistence of abnormal earnings and conservative accounting factors. Second, while prior rearch recognizes the impact of conservatism on accounting numbers(e.g., Zhang 2000; Beak 2004), there is limited research on how to empirically capture such impact. This paper develops an empirical measure to capture the impact of conservatism on abnormal earnings for individual firms.