The Relationship Between Industry Structure, Market Share and Capital intensity with Abnormal Earnings Persistence in Public Firms

This study investigates Ohlson's Linear Information Dynamic (LID) and evaluates the effect of "other information" on the abnormal earnings series using 100 firms panel data during 1376-1386 by Generalized Method of Moments(GMM). It tests the effect of industry structure, market share and capital intensity as "other informayion" on abnormal earnings of the following period, with Ohlson's LID persistence maintained. The results confirm the premise of LID, considering all the statistical models. The results also indicate that industry structure and capital intensity influence abnormal earnings persistence. Therefore, the industry structure and capital intensity have a informational content and reflect in Ohlson's Model (1995) as "other information". Confirm with the results the hypothesis that market share influences abnormal earnings persistence is rejected; Therefore, market share firm size does not have informational content and does not reflect in the Ohlson's Model(1995).