The moderating effect of intellectual capital on the relationship between board of directors’ characteristics and earnings persistence

The primary purpose of this study was to investigate the moderating role of intellectual capital in the relationship between board of directors’ characteristics and earnings persistence among companies listed on the Tehran Stock Exchange. Earnings persistence, as a feature derived from accounting information, serves as an important indicator that enables investors to forecast future earnings and cash flows. Earnings persistence is based on the repeatability of current profits, and the higher the earnings persistence, the more the company can maintain its current profits, which implies higher earnings quality. This study was conducted over five years from 2019 to 2023. After ensuring the availability of information, the researcher collected and analyzed the datasets using Excel software and EViews. The results indicated a positive and significant relationship between board size and their independence and earnings persistence (3.618), but a negative and significant relationship was found between the number of board meetings and earnings persistence. No relationship was found between gender distribution and earnings persistence. Additionally, the moderating effect of intellectual capital on the relationship between board size, independence, and the number of board meetings with earnings persistence was positive and significant. Still, intellectual capital did not affect the relationship between gender distribution and earnings persistence.