A literature review on sustainable earnings and its impact on stock returns

The aim of this article is to review the existing literature on Sustainable Earnings and its various determinants and how its impacts on Stock Returns. I have reviewed the studies conducted on various aspects of Sustainable Earnings. I have summarized the conclusions of all the studies so that the reader will get the idea on what studies has been conducted on Sustainable Earnings and its impact on Earnings Response Coefficient at one place. I have categorized the studies into different sub topics. Due to tremendous growth of Stock Markets it has gained the interest of investors as well as researchers. The objective of this article is to throw a light on the existing literature on Sustainable Earnings and to differentiate between the transitory component and persistence component of earnings and to gain insight into differential investor's reaction on earnings announcements.