Özet:

The purpose of the study is to examine the persistence of earnings in Turkey and whether earnings persistence is more attributable to cash flow or accrual component of earnings. In accordance with this purpose, the persistence of earnings and its components of 158 firms traded in Borsa Istanbul between the years of 2005-2010 are tested using panel data analysis methodology. The results of the study indicate that earnings are persistent in Borsa Istanbul. Moreover, the total accrual component of earnings has a weak effect on the persistence of earnings in comparison with the cash flow component of earnings. This is mainly due to abnormal accrual component of earnings

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