The effect of realized earnings fluctuations in the Islamic stock market on market expectations of future earnings

Expectations from the future of the market and future profits form the strategy of investors to enter the market. The main purpose of this study is to investigate the effect of predictive earnings information content on market expectations of future earnings in companies listed on the Tehran Stock Exchange. The selected time period for this research is 10 years during the years 1388-1397. To examine the relationships between variables in the present study, the panel panel econometrics method and all related tests are used and finally it is concluded that such as accruals, market value to book value, systematic risk, dividend ratio to previous profit Unexpected items, the difference between realized and estimated profits and finally financial leverage have a significant impact on the abnormal returns accumulated in the Islamic market. The effect of shocks on the process of stock returns fluctuations have a long-term effect that shows the possibility of past prices in predicting future price changes. Also, the findings show that the backward fluctuations themselves have a much greater impact on the current realized conditional fluctuations than the mutual market fluctuations in all pairs, and are the result of poor integration within Islamic values.