Factors affecting earnings persistence and firms value : evidences from The Stock Exchange of Thailand in Set 100 Index

Abstract

The objective of this research aimed to study factors affecting earning persistence and firm value of list firms in the stock exchange of Thailand in set 100 Index. The data was collected in 5 years period from 2011 – 2015 which including 213 samples and then analyzed data by using descriptive statistics and multiple regression analysis. The research revealed growth rate of sales, current earnings and cash flow for short term investment reflected to earnings persistence. Furthermore, this research also shed some light on factors affecting firm value and found that earnings persistence, financial risk, dispersed ownership structure and discretionary accrual directly affected to firm value. These results provided more information to investors about significant factors for decision making, especially discretionary accrual factor. Therefore, firms who have low level of earnings management and high level of earning persistence will reflect to future firm value.