The aim of this study is to study the relationship between forward-backward effects on stock return, which normally depends on Price-Earnings ratio (P/E)‎ and stock fluctuation in stock exchange. Monthly time series pattern of Tehran stock exchange are used monthly from 2006 to 2010. The data contains all available companies in exchange where the shares were traded at the least 120 days during for the recent 12 months. The results of this research show that the independent variables investigated in this research have meaningful effects on the research's dependent variable. This means that the effects of company’s systematic risk and markets risk on companies’ stock return are positive.

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Corresponding author. Tel: +989122316247

E-mail addresses: younos.vakil@gmail.com (Y. VakilAlroaia)

© 2012 Growing Science Ltd. All rights reserved.

doi: 10.5267/j.msl.2012.04.014