THE RELATIONSHIP BETWEEN INTEGRATED MEREC-MAIRCA TECHNIQUES AND STOCK RETURN AND FINANCIAL PERFORMANCE IN THE BIST INSURANCE INDEX

Abstract

In this study, it is aimed to analyze the financial performance of companies traded in the BIST insurance index between 2019-2021 by means of financial ratios and to determine the correlation between financial performance and stock return. For this purpose, the criteria in the problem examined as a Multi-Criteria Decision Making (MCDM) model were weighted using the MEREC technique. The performance rankings of insurance companies were made using the MAIRCA technique. Sequencing results were combined into a single ranking with the Borda sequencing technique. Spearman rank correlation coefficient analysis was used to test the correlation between ranking results and stock returns. While the cash ratio was the most important criterion in all years, the debt ratio was the lowest criterion. Anadolu Hayat Emeklilik A.Ş. held the first place in terms of financial success in all years, while Türkiye Sigorta A.Ş. took the last place. According to the Spearman rank correlation coefficient, it has been observed that there is a statistically significant and high correlation between the ranking results of the insurance companies based on financial ratios and their stock earnings in 2021, and there is no correlation between 2019, 2020 and Borda technique rankings and stock returns.