Corporate Profitability and its Connection to Liquidity Growth and Stock Return

The study of profit information content has a wide range of theoretical and practical foundations for the academics and professionals in the field of accounting and management, to conduct scientific research to fill the gaps. Consequently, in the present study, the information content was examined for the profitability of companies listed on the Tehran Stock Exchange as the research population, during a time period of 5 years from 1393 to 1397. Using a systematic elimination method, among all listed companies on the Tehran Stock Exchange at the beginning of 1398, 128 companies having the desired conditions were selected to be explored as the research sample. Using a Quantile Regression Model, the results showed different indicators: A) The quarters analyzed, showed a significant relationship between changes in Stock Return and future Profitability, but it was negative only in the first quarter, and positive, in the sub-sequent quarters studied. B) All analyzed quarters, showed a significant relationship between the economic variable of Liquidity Growth and future Profitability, but it was positive in the 1st quarter, and negative in the sub-sequent quarters.