"I am quite happy working here and I hope that I am doing so for many years to come," he said at the training ground on Tuesday. "Why would I [walk away]? I have got a fantastic job, one of the best in the country.
"If I had spent £50m, £60m or £70m putting talent on the pitch and it wasn't happening then I might say to myself 'hang on a minute son, you haven't done it', but that has not been the case."
Pearce admitted he does not fear the sack and revealed he will he receive no pay-off from City should the board give him the boot.
"I have gone into football management knowing full well that somewhere along the line - by the law of averages - I am probably going to get the sack," he said.
"In the job that I do I sometimes look at managers and think to myself 'have you not been sacked because the club cannot afford to pay you off?' I do not afford myself that kind of luxury. I tread on a tightrope from that point of view because there is no compensation clause in my contract. I prefer it that way because you know where you stand."
Pearce believes the team's current predicament is similar to following the dismal 4-0 defeat at Wigan in October and is confident they can turn their poor fortunes around.
"I think I have a fantastic staff around me and a good group of players and it is now down to me to get results," said the City chief.
"Everything else is really a side issue that doesn't overly concern me. If somewhere down the line I am going to get the sack it will happen. Worrying about it will not avert it or make it any quicker.
"I harp back to before Christmas when we lost away at Wigan in a very poor game and come the Monday morning everyone was there ready to work. From that moment on I knew I was working with a very genuine squad.
"I know the players will respond," he added. "They will turn around and say they want to work hard on the training pitch. Once you have got that and when you have always got that then you are home and dry.
"At this club over the last 2 years there have been a lot of things right and a few things wrong. We know what the short-comings are. This season they are there for all to see. It is important that - no matter what my future is at City - that the baby doesn't go out with the bath water."