Determining the relationship between stock return and financial performance: an analysis on Turkish deposit banks

Abstract

Banks play a very important role in financial markets due to their intermediary function. The availability of financing to businesses and individuals, the prevalence of branches throughout the country as well as the preference status at the collection point as a result of the habits of savings holders, have made deposit banks more active among other financial institutions. Since the banking system affects the whole economy, their performance and their performance evaluation become important. Performance measurement can be defined as one of the most important issues in the financial field. In this study, the relationship between stock return and financial performance of Turkish deposit banks was examined via CRITIC method, TOPSIS method and Spearman’s rank correlation analysis for 2014–2018 periods. According to the results of the analysis, there is no statistically significant correlation between the stock return ranking and financial performance rankings of deposit banks in Turkey.

KEYWORDS:

• Stock return
• financial performance
• Turkish deposit banks
• CRITIC
• TOPSIS

Mathematics Subject Classifications:

• 62-07
• 62G
• 90
• 90B50
• 91G70

Disclosure statement

No potential conflict of interest was reported by the author(s).