Financial performance evaluation by multi-criteria decision-making techniques

Türegün, Nida

doi:10.1016/j.heliyon.2022.e09361

Cited by 16 publications

(9 citation statements)

References 60 publications

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“…While advantageous, it may lead to value reduction or short-term EVA rise through limited investments. If EVA growth coincides with a higher cost of capital (due to risk or capital structure changes), the value could drop despite EVA increase (Türegün, 2022).…”

Section: Disadvantages Of Evamentioning

confidence: 99%

Non-Traditional Methods for Assessing the Financial Situation of a Farm

Mazancová

2024

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The main objective of assessing a company’s financial state is predicting its future development. In agriculture, failure factors differ from other industries, including high debt and interest rates, lower profitability during recessions, and environmental impacts like droughts and floods. To ensure market survival, modern management of agricultural enterprises is crucial. Business analysis generates data for this. A financially healthy enterprise is profitable, efficiently uses capital, and repays obligations on time. Various methods measure financial performance, chosen based on time frame, purpose, data nature, and sources. Complex measurements should be balanced. Financial issues arise from internal and external factors, often due to environmental changes. In agriculture, understanding success factors is vital for long-term survival as food demand increases. Failure factors are diverse, spanning economic (profitability, liquidity) and non-economic (planning, decision-making). Mismanagement and external factors can lead to farm failure. In this changing environment, success requires future-focused financial development, making retrospective analysis insufficient. Predictive models tailored to each country's specifics are essential for agricultural sustainability. This study explores such models and their relevance for agricultural financial sustainability.

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Section: Disadvantages Of Evamentioning

confidence: 99%

Non-Traditional Methods for Assessing the Financial Situation of a Farm

Mazancová

2024

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“…The closest to the positive ideal solution and the farthest from the negative ideal solution is regarded as the most successfull alternative (Olson, 2004). TOPSIS method was used in a study in which the financial performance of tourism companies traded in Borsa Istanbul were analyzed (Türegün, 2022). In another study where companies' social responsibility degrees were evaluated, the TOPSIS method was preferred (Lamata et al, 2018).…”

Section: Technique For Order Of Preference By Similarity To Ideal Sol...mentioning

confidence: 99%

A Special Look into the Mining Companies in Borsa Istanbul with MCDA Methods

Elma¹

2023

Proceedings of the 6th International Conference on Management, Economics and Finance

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Organizational performance is crucial in determining the position of a company within its industry. Especially with financial performance, the positive and negative aspects of a firm can be determined with comparisons to similar companies, in an effective and practical fashion. In financial performance analyses where multiple criteria need to be scrutinized, multi-criteria decision analyses (MCDA) have used extensively in recent years. Due to its geological infrastructure, the mining sector has a strategic importance in Türkiye. To that end, mining companies traded in Borsa Istanbul were examined in this study in terms of financial performance and all 5 companies operating in the aforementioned sector were ranked according to their performance scores. 6 accounting and valuation-based criteria were used along with standard deviation weighting technique, and 7 quarterly periods between 2021 and 2022 were investigated in this research. Interestingly, Gray Relational Analysis (GRA) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods generated similar results when overall industry is analyzed, in terms of performance scores. Thus, GRA and TOPSIS methods are suggested to financial decision makers as a decision support system in order for them to take strategical decisions in capital markets where uncertainty is severely experienced.

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“…Gupta et al (2021) examined sectoral indices of India's national benchmark index (Nifty) of that country's stocks using MCDM techniques to rank them and provide a holistic overview of their performance. Türegün (2022) applied VIKOR and TOPSIS to analyze tourism companies' stocks traded in Istanbul's capital market. Kocada glı and Keskin (2015) used a fuzzy portfolio selection approach to identify portfolio returns, better coefficients, and risk in stock investing.…”

Section: Review Of Mcdm Use In Financial Sector Studiesmentioning

confidence: 99%

BWM—RAPS Approach for Evaluating and Ranking Banking Sector Companies Based on Their Financial Indicators in the Saudi Stock Market

Alamoudi

Bafail

2022

JRFM

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Seeking the greatest possible return on long-term investments, investors naturally seek equities of the best-performing companies that fit their investment timeframe. Long-term investment success rests on selecting the best companies, which requires a challenging analysis reviewing voluminous and often-conflicting data about companies and understanding broader economic forecasts. This paper undertook a case study deployment of MCDM methodologies to examine the suitability and effectiveness of Multi-Criteria Decision-Making (MCDM) methods in assessing and ranking the best stocks for portfolio inclusion. A combination of MCDM techniques comprised a methodology to evaluate and rank Saudi Arabian banking stocks based on their performance in the Saudi stock market. Specifically, the paper combined the Best–Worst Method (BWM) and Ranking Alternatives by Perimeter Similarity (RAPS) for the analysis. BWM calculated each criterion’s relative impact (weight) in selecting a stock. RAPS then used the weighting to rank the results of the investigation. The study’s findings yielded encouraging results regarding using an integrated MCDM technique to derive optimal banking sector securities in the expansive Saudi stock market. The novel application of the robust RAPS technique combined with BWM encourages continued and increased use of MCDM techniques in financial matters and broader application in evaluating equities.

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Financial performance evaluation by multi-criteria decision-making techniques

Cited by 16 publications

References 60 publications

Non-Traditional Methods for Assessing the Financial Situation of a Farm

Non-Traditional Methods for Assessing the Financial Situation of a Farm

A Special Look into the Mining Companies in Borsa Istanbul with MCDA Methods

BWM—RAPS Approach for Evaluating and Ranking Banking Sector Companies Based on Their Financial Indicators in the Saudi Stock Market

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