EARNINGS PERSISTENCE OF COMPANIES LISTED ON MARKET FOR ALTERNATIVE INVESTMENT

Abstract

          This study aims to study earnings persistence of companies listed on the Market for Alternative Investment and compare earnings persistence of large and small companies. The data for an analysis was collected from financial statements of 69 companies listed on the Market for Alternative Investment during the year 2010-2014, resulting in 345 firm-years. The analysis of earnings persistence was based on the autoregressive model of order 1. A comparison of earnings persistence between large and small companies used t-test. The result showed that earnings persistence of most companies was lower than the market average. When comparing the earnings persistence between large and small companies using t-test, It was found that earnings persistence of large and small companies were not statistically different at 95 percent confidence interval.