Find in Library

Earning as an important item of financial statement is considered by many researchers. Many researches in different aspect of earning show the extreme important of it. Here,  we attempt to consider  earning persistence  as a basic and effective factor in making decision and stock price so we investigate the explanatory power 's of earning (include three level of earnings:  operating  earnings, net profit and earnings forecast) in  stock price. Book value as an important factor is considered in the recent decade and some stock evaluation models use book value as a relevant factor .we also investigate the explanatory 's power of book value in stock depend on higher or lower earning persistence. Our results show, when earning persistence increase, the explanatory's power of earning in stock price increase too.  These evidences accompany our hypothesis in different level of earnings. But we could not find any evidence about contemporary role of book value and earning persistence in stock price.