A Novel MCDM Framework for Evaluating Corporate Financial Performance: Evidence from the Turkish Insurance Sector

The corporate financial performance of Turkish insurance companies was evaluated through the development of a novel hybrid multi-criteria decision-making (MCDM) framework, integrating the Ranking Comparison (RANCOM), Simple Weight Calculation (SIWEC), and Multi-Attribute Ideal-Real Comparative Analysis (MAIRCA) methodologies.Within this framework, financial indicators were selected based on expert input, and indicator weights were determined through the combined application of RANCOM and SIWEC methods.Subsequently, company rankings were established by employing the MAIRCA method.To ensure the robustness and reliability of the proposed framework, extensive sensitivity analyses were conducted.The findings identified the current ratio, defined as the ratio of current assets to current liabilities, as a critical determinant of financial performance.Trkiye Sigorta was consistently ranked as the top-performing company over the analyzed period.The outcomes of the sensitivity analyses confirmed the stability and effectiveness of the proposed decision-making model in assessing corporate financial performance within the insurance industry.This study contributes to the financial performance evaluation literature by demonstrating the applicability and advantages of hybrid MCDM approaches in dynamic and highly regulated sectors such as insurance.