Abstract

This paper tested the abnormal earnings persistence in the Jordanian context through Ohlson’s (1995) first
Linear Information Dynamics (LID) Model using an unbalanced panel regression analysis for a sample of (840)
public firms listed in the Amman Security Exchange during the period 2007 to 2011. The results showed a
highly value relevance for the industrial, financial and services sectors indicated by the coefficient of the
abnormal earnings persistence. The services sector had the highest value relevance. However, the industrial and
the financial sectors were closed. Finally, the results for the detailed industry analysis of the sub-sectors had
shown different values for the coefficient of the abnormal earnings persistence, and bank firms, printing &
packaging firms, and the utilities & communication firms had the highest values for the coefficient of the
abnormal earnings persistence.

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