Determinants of earning persistence based on implied terminal value estimates of EBO model: Evidence of listed companies of China

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