The samples that were used in this research were taken from TEJ (Taiwan Economic Journal) and MOPS (Market Observation Post System). The research objects were listed and OTC companies. The study observed the objects’ performance between year 2006 and 2012. The total number of research objects are 9,088. This research used the method of ordinary least squares to analyse the data. The model included relevant variables, such as enterprise scale, net worth to debts ratio, operating cash flow, net operating profit before tax, the rate of market value and net value, and the corporate governance (Chairman concurrently general manager, ratio of holding stock, and board seats), etc. The research was expected to draw a conclusion on whether the loss companies who raise the salary of their directors and supervisors have a relatively low earnings persistence. By analysing these data, the research result shows: when a company is defined as fat cat enterprises, it shows losses in profit and increases in salary of its directors and supervisors. Investors regard this company is un-well governed, which results in reducing credibility of this company’s financial statement, and then leads to reducing in earnings persistence.