Cilt 7, Sayı 12, Sayfalar 1 - 16 2015-04-20

THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL

Rafet AKTAŞ [1] , Seyfettin ÜNAL [2]

731 1650

It is a common perception that efficiency is an important issue regardless of industry. A sound and
highly functional insurance industry serves as a crucial financing channel in an economy. At this aspect, this
study aims to examine the relationship between the financial efficiency ratios and stock prices of insurance
firms, whose stocks are publicly traded in Borsa Istanbul. The study is performed on quarterly data set. The
sample period covers 2005Q1 and 2012Q4. Taking three sets of efficiency ratios, which are namely cost,
revenue and profit efficiency, as proxy, we run a regression analysis against stock prices. This study is the
first, best to our knowledge, in examining the interaction between Turkish insurance firms’ efficiency ratios
and their stock prices. Our findings suggest that all of employed models confirm statistically significant
relationships between the ratios and stock prices. Among the three ratio groups, profitability ratios emerge
as the best fit models. The results carry important implications for insurance firms as well as investors.
Keywords: Insurance, Efficiency, Ratios
Jel Codes: C10, C22, G22

It is a common perception that efficiency is an important issue regardless of industry. A sound and highly functional insurance industry serves as a crucial financing channel in an economy. At this aspect, this study aims to examine the relationship between the financial efficiency ratios and stock prices of insurance firms, whose stocks are publicly traded in Borsa Istanbul. The study is performed on quarterly data set. The sample period covers 2005Q1 and 2012Q4. Taking three sets of efficiency ratios, which are namely cost, revenue and profit efficiency, as proxy, we run a regression analysis against stock prices. This study is the first, best to our knowledge, in examining the interaction between Turkish insurance firms’ efficiency ratios and their stock prices. Our findings suggest that all of employed models confirm statistically significant relationships between the ratios and stock prices. Among the three ratio groups, profitability ratios emerge as the best fit models. The results carry important implications for insurance firms as well as investors
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Birincil Dil en
Konular
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Yazarlar

Yazar: Rafet AKTAŞ
E-posta: raktas@ybu.edu.tr

Yazar: Seyfettin ÜNAL
E-posta: seyfettinu@hotmail.com

Bibtex @ { marufacd4613, journal = {Finansal Araştırmalar ve Çalışmalar Dergisi}, issn = {1309-1123}, address = {Marmara Üniversitesi}, year = {2015}, volume = {7}, pages = {1 - 16}, doi = {10.14784/jfrs.53994}, title = {THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL}, language = {tr}, key = {cite}, author = {ÜNAL, Seyfettin and AKTAŞ, Rafet} }
APA AKTAŞ, R , ÜNAL, S . (2015). THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL. Finansal Araştırmalar ve Çalışmalar Dergisi, 7 (12), 1-16. DOI: 10.14784/jfrs.53994
MLA AKTAŞ, R , ÜNAL, S . "THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL". Finansal Araştırmalar ve Çalışmalar Dergisi 7 (2015): 1-16 <http://e-dergi-marmara.dergipark.gov.tr/marufacd/issue/509/4613>
Chicago AKTAŞ, R , ÜNAL, S . "THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL". Finansal Araştırmalar ve Çalışmalar Dergisi 7 (2015): 1-16
RIS TY - JOUR T1 - THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL AU - Rafet AKTAŞ , Seyfettin ÜNAL Y1 - 2015 PY - 2015 N1 - doi: 10.14784/jfrs.53994 DO - 10.14784/jfrs.53994 T2 - Finansal Araştırmalar ve Çalışmalar Dergisi JF - Journal JO - JOR SP - 1 EP - 16 VL - 7 IS - 12 SN - 1309-1123- M3 - doi: 10.14784/jfrs.53994 UR - http://dx.doi.org/10.14784/jfrs.53994 Y2 - 2017 ER -
EndNote %0 Finansal Araştırmalar ve Çalışmalar Dergisi THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL %A Rafet AKTAŞ , Seyfettin ÜNAL %T THE RELATIONSHIP BETWEEN FINANCIAL EFFICIENCY RATIOS AND STOCK PRICES: AN EMPIRICAL INVESTIGATION ON INSURANCE COMPANIES LISTED IN BORSA ISTANBUL %D 2015 %J Finansal Araştırmalar ve Çalışmalar Dergisi %P 1309-1123- %V 7 %N 12 %R doi: 10.14784/jfrs.53994 %U 10.14784/jfrs.53994