M.A. Thesis:

Accumulated profit٫ capital and reserves in predicting stock return

From the point of view of the directors of the company, profitability of the expected stock is one of the major factors in capital borrowing, Because it is for the investors to believe that the company is being marketed and expresses the function of the company. One of the most important methods for evaluating how stock prices are priced by investors Using a more valuable ratio to market value. This ratio is used extensively among investors and researchers in financial markets. A more valuable company's stock includes two sectors of accumulated interest and equity. In fact, accrued profit represents the unpublished returns for the years to come, and it is expected that future returns can be predicted through the review of unprocessed earnings trends. Using accumulated profits instead of more valuable ones can increase the predictability of expected returns on equity. But, on the other hand, the use of company capital, which is more valuable than the other, reduces the predictive power of output. This hypothesis has been proven by the United States stock exchange by Waley et al And now in this research, we try to test these assumptions in the Iranian capital market.

Keywords: Accumulated profit, capital,reserves,stock return