CIRJE-J-82 | 『わが国製造業のPermanent Earnings―Part II 産業別分析(1)』
"Permanent Earnings of Industrial Firms in Japan―Part II Analysis by Industry (1)―" |
Author Name | 大日方隆(Takashi Obinata) |
Date | September 2002 |
Full Paper | PDF file (only Japanese version available) |
Remarks | Revised as CIRJE-J-87 |
Abstract (Japanese) | Abstract (English) |
| This paper investigates, by industry and by period, the value relevance of earnings of industrial firms in Japan. The richness of its relevance is determined by the closeness of relation between expected permanent earnings of a firm and reported earnings, i.e. the persistence of earnings. The persistence of earnings is also affected by such a competitive condition as the endurance of firm's competitive advantage in the industry. Therefore, the industry effect in an economy (country or region), which is characterized by the composition of industry and the environments in each industry, may affect the value relevance of earnings in that economy. In addition, the industry effect is not necessarily fixed for a long time. In order to controlling the changeable nature of industry effect, this research partitions sample years into three periods. In this way, this paper directly examines the changes in the relevance of earnings by period in each industry. For investigating the factor affecting the relevance of earnings and book value of equity, we apply some meta analysis to the estimated results by OLS. Major evidence and results provided by this research are as follows.
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