摘要：The product market competition has a disciplining effect for firms, and it can contribute to the improvement of corporate governance and to the reduction of the costs of contracts. Due to the increased flow of information and the possibility of further comparison between firms in the same industry, the competition may limit the discretion of the manager, and even having direct impact on the quality of accounting information. Based on this assumption the present study investigates the relationship between the competitive environment in which the firm is embedded, and the persistence of earnings and its components (accruals and cash flows), to obtain earnings and stock returns of firms in subsequent periods. The model of Dechow (1994), Sloan (1996) and the model adapted from Ali; Hwang; Trombley (2000) were used as a basis. As a proxy for the competition the Herfindahl-Hirschman Index was used. The sample includes public companies listed on the BM&FBovespa during the period of 2006 and 2012. The results, in general, indicate that for the sample analyzed the market structure (competition level) changes the relevance of cash flow and in more concentrated industries the profits and returns are higher.
