THE EFFECTS OF FINANCIAL PERFORMANCE THAT MEASURED BY TOPSIS AND MOORA METHODS ON STOCK RETURNS: A PANEL DATA APPLICATION ON BIST CEMENTCONCRETE COMPANIES

Abstract

In this study, the effects of the financial performance on stock returns has been analysed. The study covers 6 month data of BIST cement-concrete companies for the period 2010-2016. For each period, the financial performances of firms have been converted to quantitative values by using TOPSIS and MOORA methods. Then, the relationship between financial performance and stock returns has been analysed by panel data analysis method. According to the results of the analysis, TOPSIS scores are the variables with significant positive effect on stock returns. On the other hand, the MOORA scores do not have any significant effect on stock returns. As a result of the panel data analysis, it has been determined that the use of the financial performance values measured by TOPSIS method in stock investments is more effective than the financial performance values measured by the MOORA method.