Analysis of the relationship between financial performance and stock returns with multi-criteria decision-making techniques: An empirical practice in BIST manufacturing industry sectors

The main purpose of this thesis study is to analyze the relationship between financial ratios used in financial performance measurement and stock returns with multi-criteria decision making (MCDM) methods. For this purpose, 10 financial indicators for 2018 and stock returns of 179 firms operating in manufacturing industry sub-sectors, whose shares are traded on Borsa Istanbul, are used. Within the scope of the analysis, the Entropy method, which is one of the objective weighting methods in determining the weight of the financial criteria related to the companies are also used in the measurement of the financial performance of companies and the ranking of financial success. According to the findings obtained from the results of the study, the importance weights regarding the financial criteria determined using the Entropy method differ in terms of the sectors. On the other hand, between the financial performance ranking obtained by using COPRAS method and the annual% return ranking obtained by firms' stocks, only significant results for the Chemical, Petroleum, Rubber and Plastic Products Industry, Stone-Based Industry and Metal ware, Machinery and Equipment Making Sector. While giving, no significant relationship is found at any level of importance for other sectors.