The study aims to provide better understanding of sustainable earnings by a comprehensive analysis of earnings persistence of business firms in Vietnam as an example of developing economies in South-East Asia. Dataset of 1,278 publicly listed firms (excluding banking and financial services firms) on Vietnam Stock Exchange for the period from 2008 to 2017 was collected. By applying fixed effect regression model, the empirical results provided the basis to measure the persistence index (Pers index) and find low level of their earnings persistence. The literature of earnings quality analysis in developed countries suggests earnings persistence as a noteworthy determinant of future earnings forecast and stock valuation. However, research of sustainable earnings in developing countries is still highly underdeveloped. For Vietnamese listed firms, the average Pers index was estimated for the period from 2008 to 2010, indicating low level of earnings persistence. We also incorporated earnings persistence level into future earnings forecast by running the quintile regression model divided the data into four equal levels and conducted each section independently to see the difference in each percentile, thence assessed the factors’ influence on the specific model. The findings provide important information on the expected returns of firms, especially helping investors make sound decisions.

Abstract
1. Introduction
2. Literature Review and Hypotheses
    2.1. Determinants of Earnings Persistence
    2.2. Earnings Persistence and Earnings Forecast
3. Research Methodology
    3.1. Research Models and Variables
    3.2. Sample Selection
    3.3. Analysis Techniques
4. Results and Discussion
    4.1. Estimating Sustainable Earnings for ListedFirms
    4.2. Predict Future Profits
    4.2. Determine the Relationship between the Volatilityof Profit and the Ability to Forecast Profits
5. Conclusion
References

• Nhung Hong DO(National Economics University) Corresponding Author.
• Nha Van Tue PHAM(National Economics University)
• Dung Manh TRAN(National Economics University)
• Thuy Thu LE(National Economics University)