Analysis of Prediction Profit Announcement for Share to Volume of Share Transaction in Tehran Stock Exchange

Abstract

There are some signs, considered as influencing factors on shares transaction volume in an investment market come in a form of information and various predictions are available for investors and other users. In this research, the effective information in the predicated dividend of each share which is issued by companies in Tehran Stock Exchange. Researches aim creates direction the shareholders and investors’ decision-making process upon buying and holding the shares. In this propose doing, 78 companies among legitimate companies in Tehran Stock Exchange by using systematic omission method have chosen. This research has been done at the time of 2005 to 2007. Result gained from Vilcakson Calibrated grades tests showed transaction volume in the weeks before and after the announcing the estimated profit of each share contains information content for which the investors and shareholders changed accordingly. In the other words, this announcement is considered highly valid and reliable among investors and shareholders. They rely on this information and make their decisions upon it.Keywords: Estimated Profit of Each Share, Real Profit of Each Share, Shares Transaction Volume, Information Content, Tehran Stock Exchange.