Explaining the key factors in the ranking of insurance companies listed on the Iran stock exchange using multi criteria decision making

Pirayesh, R.; Mansouri, M.

doi:10.22056/ijir.2016.01.03

Document Type : Original Research Paper

Authors

R. Pirayesh ¹
M. Mansouri ²

¹ Department of Management and Accounting, Zanjan University, Zanjan, Iran

² Department of Management and Accounting, Abhar Azad University, Zanjan, Iran

https://doi.org/10.22056/ijir.2016.01.03

Abstract

One of the requirements for creating transformation in the country's insurance industry in line with the desired services is the design and implementation of performance evaluation systems and the rating of insurance companies. The ranking of insurance companies is examined in order to improve the quality, efficiency, and effectiveness of insurance functions. Ranking of insurance companies, which is often a financial evaluation of insurance companies, leads to transparency, increasing efficiency, and creating competition in the market. Rating information is available to stakeholders. The basic purpose of this research is to identify the key components in the rating of insurance companies as well as the rating of insurance companies admitted to the Iranian Stock Exchange in order to evaluate the reliability of insurance companies. This research has identified the key factors in the ranking of insurance companies by using the Smarter method and has ranked the insurance companies admitted to the stock exchange by using the TOPSIS method. The statistical population of the research includes the customers of insurance services of 5 insurance companies admitted to the Tehran Stock Exchange (Asia, Alborz, Parsian, Dana, and Mellat) and the sample size includes 60 representatives of the aforementioned companies. The results of the research showed that based on the multi-criteria decision making model in the ranking of companies, earnings per share, rate of return on equity, price-earnings ratio per share, return on assets, percentage of free floating shares, added market value, company share From the whole market, and economic added value are in the first to eighth ranks, respectively. Also, the results showed that based on the mentioned indicators, Parsian Insurance Company, Alborz Insurance Company, Mellat Insurance Company, Dana Insurance Company, and Asia Insurance Company are ranked first to fifth respectively.

Keywords

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Iranian Journal of Insurance Research

Explaining the key factors in the ranking of insurance companies listed on the Iran stock exchange using multi criteria decision making

Letters to Editor

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Volume 5, Issue 1 - Serial Number 15
January 2016
Pages 30-38

Explaining the key factors in the ranking of insurance companies listed on the Iran stock exchange using multi criteria decision making

Letters to Editor

Send comment about this article

Volume 5, Issue 1 - Serial Number 15January 2016Pages 30-38

Volume 5, Issue 1 - Serial Number 15
January 2016
Pages 30-38