Effect of Abnormal Earnings on Earnings Persistence: The Case of Shipping and Shipbuilding Industry

Even though shipping and shipbuilding industries have been one of the leading in Korea, both suffered a long dark period since global financial crisis 2008. In particular, are more sensitive to economic fluctuations than other industries, stable earnings an important factor stakeholders’ decision-making. This study investigates difference persistence between industry using Ohlson’s model. Empirical results show that is significantly higher industry. result implies low from recession after 2008 government policies focused on On hand, high can be attributed added value ship orders, intensive support economies scale crisis. case industry, technology quality factors for creation while intangible such as cargo service quality, route, creditworthiness transportation continuous creation. addition, balance expected bring about shared growth two main Korea.