This study examines the implications of sustainable management for the persistence of earnings and earnings components. This study also analyzes whether sustainable management influences investors’ assessments of earnings persistence. According to previous studies, sustainable management activities ultimately have a positive effect on corporate financial performance and corporate value by satisfying the desires of not only shareholders, but also various actors concerned with social contributions and reduced information asymmetry. In addition, the transparency of financial reporting increases as earnings management decreases due to ethical management. So this study predicts that excellent sustainable management activities will improve earnings persistence and investors use as a signal to correctly price the persistence of earnings. This research uses the ESG ratings as a proxy for sustainable management and sample size is 3,247 in Korea securities market. The empirical results show that there is a significant positive relationship between higher ESG grades and earnings and earnings components. And by the method of Mishkin (1983), investors correctly price the persistence of earnings and earnings components based upon sustainable management activities. The results in this study helps to improve our understanding of the impact of sustainable management for earnings quality and investors’ evaluation of earnings quality.

中文翻译：

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可持续管理对盈利持续性和市场定价影响的研究：来自韩国的证据

本研究探讨了可持续管理对收益和收益成分的持续性的影响。本研究还分析了可持续管理是否会影响投资者对盈利持续性的评估。根据以往的研究，可持续管理活动不仅满足股东的愿望，而且满足社会贡献和减少信息不对称的各种参与者的愿望，最终对企业财务业绩和企业价值产生积极影响。此外，由于伦理经营导致盈余管理下降，财务报告的透明度也随之提高。因此，本研究预测，优秀的可持续管理活动将提高盈利持久性，投资者将其用作正确定价盈利持久性的信号。本研究使用 ESG 评级作为可持续管理的代表，韩国证券市场的样本量为 3,247。实证结果表明，较高的 ESG 等级与收益和收益成分之间存在显着的正相关关系。通过 Mishkin (1983) 的方法，投资者正确地对基于可持续管理活动的收益和收益成分的持续性进行定价。本研究结果有助于加深我们对可持续管理对盈余质量的影响以及投资者对盈余质量评价的认识。并且通过 Mishkin (1983) 的方法，投资者正确地对基于可持续管理活动的盈余和盈余成分的持续性进行定价。本研究结果有助于加深我们对可持续管理对盈余质量的影响以及投资者对盈余质量评价的认识。并且通过 Mishkin (1983) 的方法，投资者正确地对基于可持续管理活动的盈余和盈余成分的持续性进行定价。本研究结果有助于加深我们对可持续管理对盈余质量的影响以及投资者对盈余质量评价的认识。