Ranking Insurance Companies in Turkey Based on Their Financial Performance Indicators Using VIKOR method

Ercan M., Önder E.

International Journal of Academic Research, Finance and Management Science, vol.6, pp.104-113, 2016 (Peer-Reviewed Journal)


Financial performance evaluation of firms is a kind of multi-criteria decision making (MCDM) problem which has multiple and conflicting criteria (financial ratios). Companies should monitor their performance indicators in order to ensure appropriate and timely decisions and plans. The aim of this study is to evaluate the financial performance of five listed insurance companies in the Istanbul Stock Exchange (Borsa Istanbul-BIST) during 2010 – 2015 (quarterly) periods. VIKOR method is used for the ranking of firms. Our model shows that Avivasa Emeklilik & Hayat A.S. (AVISA) is the best performing insurance company in these five companies during the years 2010 – 2015.


Keywords: Financial Performance, Turkish Insurance Sector, Multi Criteria Decision Making (MCDM), VIKOR Method, Ranking