Abstract
This study aims to find empirical evidence relating to the factors influencing earnings persistence. This research used 42 non-financial companies listed on the Indonesia Stock Exchange from 2016 to 2018, providing 126 firm years of data. Generalised least-squares (GLS) was employed to analyse fixed effect panel data to enable control for unobserved heterogeneity at both industry and time levels. The results of this research showed that systematic risk does not have an effect on earnings persistence while audit quality and leverage have negative significant effect on earnings persistence. Company growth and size have positive significant influence on earnings persistence. The results of this research implies that, in making their investment decisions, investors assess company earnings persistence via the indicators contained in annual reports of audit quality, growth, company size and leverage. These findings contribute to research pertaining to earnings persistence and market-based accounting.
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