Investigation and statistical analysis of the relationship betweenthe quality of profitability and stock returns

In this study, the relationship between profit dispersion and stock returns in Tehran StockExchange has been investigated. The main purpose of this research is to investigate andcompare the relationship between profit dispersion and stock returns using Jorgensen et al.'s(۲۰۱۲) model. The analysis of the data collected in this research was done using regressionmethods and t significance test. Then the research hypotheses were tested. The results of thesurvey of ۲۸۵ sample member companies showed that there is a positive and significantrelationship between current profit dispersion and current stock returns. As a result, the firsthypothesis that there is a significant relationship between current dividend dispersion andcurrent stock returns is accepted, and the second hypothesis that there is a significantrelationship between future dividend dispersion and current stock returns is rejected.

Keywords:

Stock returns , profit dispersion , profitability , company growth , company size