Introduction
It is important to measure the performance of companies and determine the factors affecting them in the economic decisions of market participants and stakeholders. For this reason, since the past decades, the issue of measuring the performance and ranking of companies has been taken into consideration by many researchers. This research is analytical and descriptive. Also, this research is applied and quantitative. The purpose of this research is to measure and evaluate the performance and rating of insurance companies based on the performance index level. Also, in this research, the effect of macroeconomic variables (such as Exchange Rate, consumer price index, and GDP per Capita) on the change of position and rank of companies during the period of 2017 to 2022 is investigated. Performance micro-indicators include liquidity ratios, leverage ratios, activity ratios, profitability ratios, and market value ratios.
Methodology
In this research, the effect of changing the rating of insurance companies over time is analyzed with the approach of variance analysis and the combined data regression model, and the status of the rating of the companies is described from the perspective of performance from 2015 to 2014. Therefore, this research is analytical and descriptive as well as practical. In this research, 23 active insurance companies whose trading symbols are on the Tehran Stock Exchange and whose data were available are considered, and the time period from the beginning of each company's entry to the stock exchange is from 1395 to 1400. Because some companies have entered the stock market in recent years, this time frame has been set for the rating of insurance companies. After aggregating the micro-indicators with the I-Distance method in the R software environment, the performance ranking of 23 active insurance companies in the stock market has been done. Two-factor analysis of variance (Anova) and combined data regression model (Panel Data) have been used to investigate the reasons for the change in the rating of insurance companies.
Results and Discussion
The ranking results show that the performance status of a number of companies has improved in 2022 compared to 2017, but the performance of other companies has not improved. The results of two-factor variance analysis of companies' performance level show that both company fixed effects and year change effects are effective in changing the ranking of companies.
Conclusion
According to the results of analysis of variance, both company fixed effects and year change effects are effective in changing the ranking of companies. The effects of the change of year can be due to changes in macroeconomic variables (such as exchange rate, inflation rate and annual income and even income distribution inequality), which the results of the regression model test also confirm this issue. Exchange rate changes cause changes in the prices of goods and services, inputs and outputs and in this way, it affects the expected current and future cash flows and the stock returns of the economic enterprise. At Indeed, the exchange rate change brings a series of different and even contradictory changes in the foreign and domestic sectors of the economy has the result of which can affect the performance of companies positively or negatively. Decreasing price stability on the one hand brings the risk of stagnation and on the other hand many psychological and social effects, so that increasing inflation can upset the balance between any value and cause losses to the parties of any transaction. For example, one of the types of effects of inflation can be seen as its time effect, in such a way that the longer a transaction takes, the greater the effect of inflation on it. Accordingly, the insurance industry is also not immune from the effects of inflation due to its wide connection with other macroeconomic sectors. The insurance penetration rate has a direct relationship with the GDP per capita. With a decrease in GDP per capita, which means a decrease in the purchasing power of the general public, the amount of demand for insurance products at the community level decreases, and on the contrary, with an increase in the GDP per capita, the amount of demand for insurance by the general public and the economy increases. One of the goals and benefits expected from the supervision of insurance companies is to strengthen the risk management system and focus on preventive measures. Therefore, supervisory institutions in each country use tools to monitor insurance companies. Supervisors monitor insurance companies' risk exposure using key performance indicators. Therefore, the supervisory body can adjust the risk-taking level of insurance companies based on the performance evaluation results. If a company has a high risk score and on the other hand the company's market share is high, this will mean a serious problem for the insurance industry.