Studies of Earning Prediction Model Based on Earning Persistence

摘要

Earning persistence is an important feature of accounting earnings, which would directly affects the accuracy of the investors' prediction about the company's future earning situations.In order to establish the earning prediction model, this article selects 332 Shanghai A-share listed companies in the manufacturing sector as the study samples and analyses the study samples' financial data by the method of factor analysis and random walk models.After designed earning volatility coefficient and earning changes factor from the perspective of earning persistence, the earning prediction model is finally established.