The performance evaluation of Private Insurance Companies Listed on the Tehran Stock Exchange: A Multi-Criteria Decision-Making Approach
Subject Areas : Industrial Management
Leila Ariamanesh
1
*
,
Sirus Sharifi
2
,
Leili Niakan
3
1 - MBA (Finance) Student, Faculty of Management, Kharazmi University, Tehran, Iran
2 - Faculty of Management, Kharazmi University
3 - Insurance Research Center (IRC)
Keywords: Insurance Industry, Multi-Criteria Decision-Making (MCDM), Performance Evaluation, Shannon Entropy, TOPSIS ,
Abstract :
This study aims to evaluate the performance of private insurance companies listed on the Tehran Stock Exchange through analyzing relevant financial and operational indicators. The data, extracted from Central Insurance (centinsur.ir) and the Stock Exchange Organization websites (tsetmc.com). A total of 16 companies and 8 indicators were examined between 2018 and 2021. The data were processed using Excel and ranking using two multi-criteria decision-making methods: TOPSIS and Shannon entropy. The study indicates that among the 16 insurance companies listed on the stock exchange during the study period, Pasargad Insurance, Asia Insurance, and Kosar Insurance achieved the highest rankings in terms of financial performance based on the factors examined. The conclusion drawn is that companies with higher scores in indicators such as market share of premium production, investment return, and profitability demonstrate better performance compared to other insurance companies, based on all the evaluation indices considered. This study might be of interest to stakeholders and investors to make informed decisions, enhancing transparency and improving performance relative to competitors. Additionally, the starting period of the study coincides with the intensification of Iran’s economic sanctions in 2018, which marked a significant economic and political turning point in the country.
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