Effect of mean reversion on profit acceleration

The purpose of this research is to investigate the effect of the return of leverage to the mean on the profit acceleration of companies listed on the Tehran Stock Exchange. A sample consisting of 105 companies admitted to the Tehran Stock Exchange between 1388 and 1397 was selected to investigate the issue. The data has been analyzed using binary logistic regression, based on the findings of the research, mean leverage return has a positive and significant effect on profit acceleration. The more the financial leverage returns to the average (target leverage), the more the profit acceleration (changes in profit growth) increases in the financial statements, and this act acts as a positive signal and increases the willingness of investors to invest in companies.