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THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES

Year 2020, Volume: 4 Issue: 2, 205 - 228, 30.09.2020

Mustafa Özgün Atalay , Meltem Altın

Abstract

This study aimed to examine the financial performance of companies in the IT sector in Borsa Istanbul during 2014–2018 by using financial ratios to determine the companies’ financial performance and using the TOPSIS method. We found that the top-ranked two companies tended to maintain their current positions. Additionally, the TOPSIS method divided the companies into two groups: high- and low-performance companies. In comparing the relationship between the portfolio returns of the companies in the two different groups and the perfor-mance ranking obtained via the TOPSIS method, we found that the portfolios that the TOPSIS method ranked as high-performing produced better returns than the low-performing. Finally, we examined the relationship between the TOPSIS-proposed performance rankings for the given period and found positive relati-onship between performance values generally.

Keywords

TOPSIS Multicriteria Decision-Making Methods Financial Performance.

References

  • Akbulut, R. and Rençber, Ö. F. (2015). Veri Zarflama ve Lojistik Regresyon Analizi ile Çimento Işletmelerinde Finansal Performansa Dayalı Etkinliklerin Değerlendirilmesi. Journal of Alanya Faculty of Business, 7(3), s.103–113.
  • Antonucci, T. C., Ajrouch, K. J., and Manalel, J. A. (2017). Social Relations and Technology: Continuity, Context, and Change. Innovation in Aging, 3(1), s.1-9.
  • Benitez, J. M., Martín, J. C., and Román, C. (2007). Using Fuzzy Number for Measuring Quality of Service in The Hotel Industry. Tourism Management, 28(2), s.544–555.
  • Bulgurcu, B. K. (2012). Application of TOPSIS technique for financial performance evaluation of technology firms in Istanbul stock exchange market. Procedia-Social and Behavioral Sciences, 62, s.1033–1040.
  • Cebeci, G. and Özbilgin, I. G. (2015). Borsa İstanbul Bilişim Endeksinde Yer Alan Şirketlerin Kurumsal Yönetim ve Finansal Performans Açısından Değerlendirilmesi, Gazi Üniversitesi Sosyal Bilimler Dergisi, 2(4), s.47–64.
  • Chater, N. Oaksford, M., Nakisa, R. and Redington, M. (2003). Fast, frugal, and rational: How rational norms explain behavior. Organizational Behavior and Human Decision Processes, 90(1), s. 63-86.
  • Chen, C. T. (2000). Extensions of The TOPSIS for Group Decision-Making Under Fuzzy Environment. Fuzzy Sets and Systems, 114(1), s.1–9.
  • Ercan, M.K. and Ban, U. (2005). Financial Management. Ankara: Fersa Publication.
  • Ertuğrul, İ. and Karakaşoğlu, N. (2009). Performance evaluation of Turkish cement firms with fuzzy analytic hierarchy process and TOPSIS methods. Expert Systems with Applications, 36(1), s.702-715.
  • Fenyves, V., Tarnóczi, T. and Zsidó, K. (2015). Financial Performance Evaluation of agricultural enterprises with DEA Method. Procedia Economics and Finance, 32, s.423-431.
  • Guerrero-Baena, M. D., Gómez-Limón, J. A. and Fruet Cardozo, J. V. (2014). Are multi-criteria decision making techniques useful for solving corporate finance problems? A bibliometric analysis. Revista de Metodos Cuantitativos para la Economia y la Empresa, 17, s.60-79.
  • Hwang, C. L. and Yoon, K. (1981). Multiple attribute decision making: Methods and applications. New York, NY: Springer-Verlag.
  • Jiang, J., Chen, Y.-W., Tang, D.-W. and Chen, Y.-W. (2010). TOPSIS with belief structure for group belief multiple criteria decision making. International Journal of Automation and Computing, 7(3), s. 359-364.
  • Konuk, F. (2018). Financial and Performance Analysis of Food Companies: Application of TOPSIS and DEA. Manas Journal of Social Studies, 7(3), s. 381–390.
  • Kuzey, P. (2007). Avrupa Birliği'ne Üyelik Perspektifinde Türkiye'de Telekomünikasyon Sektörüne Bir Bakış. Bütçe Dünyası, 25(2), s. 28–39.
  • Lee, K. R. (2002). Impacts of Information Technology On Society in The New Century. Business and Management, 5(6), s.46–55.
  • Lipaj, D. and Davidavičienė, V. (2013). Influence of Information Systems On Business Performance. Science – Future of Lithanuia, 5(1), s. 38–45.
  • Myšková, R. and Hájek, P. (2017). Comprehensive Assessment of Firm Financial Performance Using Financial Ratios and Linguistic Analysis of Annual Reports. Journal of International Studies, 10(4), s. 96–108.
  • Okay, G. and Köse, A. (2015). Financial Performance Analysis of Brokerage Firms Quoted on the Istanbul Stock Exchange Using the TOPSIS Method of Analysis. International Journal of Business and Social Science, 6(1), s.68-77.
  • Opricovic, S. and Tzeng, G. H. (2004). Compromise Solution by MCDM Methods: A Comparative Analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), s.445–455.
  • Orçun, Ç. and Eren, B. (2017). TOPSIS Yöntemi ile Finansal Performans Değerlendirmesi: XUTEK Tarafından Bir Uygulama. Muhasebe ve Finansman Dergisi, 75, s.139–154.
  • Özlü, F. (2017). The Advent of Turkey’s Industry 4.0. Turkish Policy Quarterly, 16(2), s.29–38.
  • Price, J. E., Haddock, M. D. and Brock, H. R. (1993). College Accounting (10th ed.). New York: Macmillan/McGraw-Hill.
  • Public Disclosure Platform – KAP. (2019). Financial statements. Retrieved from https://www.kap.org.tr/en
  • Saaty, L.T. (1980). The Analytic Hierarchy Process. U.S.A.: McGraw-Hill.
  • Savrul, B. K. and Kılıç, D. C. (2011). Küreselleşme Sürecinde Bilişim Sektörünün Türkiye ve Avrupa Birliği Ülkeleri'nin Ekonomileri Üzerindeki Etkileri. İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 61(2), s.257–289.
  • Shaverdi, M., Ramezani, I., Tahmasebi, R. and Rostamy, A. A. A. (2016). Combining fuzzy AHP and fuzzy TOPSIS with financial ratios to design a novel performance evaluation model. International Journal of Fuzzy Systems, 18(2), s.248-262.
  • Taani, K. (2011). The Effect of Financial Ratios, Firm Size and Cash Flows from Operating Activities On Earnings Per Share: An Applied Study On Jordanian Industrial Sector. International Journal of Social Sciences and Humanity Studies, 3(1), s.197–205.
  • Turkish Informatics Industry Assocation – TUBISAD. (2019). Information and communication technologies sector, market data report in 2018. Retrieved from http://www.tubisad.org.tr/en/images/pdf/tubisad_ict_2019_final_eng_2019 0521_1040.pdf
  • Türkmen, S. Y. and Çağıl, G. (2012). İMKB’ye Kote Bilişim Sektörü Şirketlerinin Finansal Performanslarının TOPSIS Yöntemi ile Değerlendirilmesi. Maliye ve Finans Yazıları, 95(1), s.59–78.
  • Uygurtürk, H. and Korkmaz, T. (2014). Finansal Performansın TOPSIS Çok Kriterli Karar Verme Yöntemi İle Belirlenmesi: Ana Metal Sanayi İşletmeleri Üzerine Bir Uygulama. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 7(2), 95–115.
  • Wang, Y. M. and Elhag, T. M. S. (2006). Fuzzy TOPSIS Method Based On Alpha Level Sets with an Application to Bridge Risk Assessment. Expert Systems with Applications, 31(2), s.309–319.
  • Yorulmaz, R. (2013). Construction of A Regional Financial Inclusion Index in Turkey. Journal of BRSA Banking and Financial Markets, 7(1), s.79-101.

TOPSIS ÇOK KRİTERLİ KARAR VERME YÖNTEMİ İLE FİNANSAL PERFORMANSIN ÖLÇÜLMESİ: BİLGİ TEKNOLOJİLERİ SEKTÖRÜ ÜZERİNDE BİR UYGULAMA

Year 2020, Volume: 4 Issue: 2, 205 - 228, 30.09.2020

Mustafa Özgün Atalay , Meltem Altın

Abstract

Bu çalışmanın amacı, 2014-2018 yılları arasında Borsa İstanbul'da bilişim sektö-ründe işlem gören işletmelerin finansal oranlar aracılığıyla TOPSIS yöntemi kul-lanılarak finansal performansları incelenmiştir. Araştırma sonuçlarına bakıldığın-da, en üst sırada yer alan iki işletmenin mevcut pozisyonlarını koruma eğiliminde oldukları görülmüştür. Çalışma kapsamında olan şirketler TOPSIS yöntemi ara-cılığıyla iyi ve kötü performans gösteren şirketler olarak iki gruba ayrılmıştır. İki farklı grupta yer alan firmaların portföy getirileri ile TOPSIS yöntemi ile elde edilen işletme performansları sıralaması arasındaki ilişki incelenmiş, TOPSIS yöntemine göre yüksek performans gösteren işletmelerin portföylerinin düşük performans gösteren şirketlerin portföylerine göre daha fazla getiri sağladığı tes-pit edilmiştir. Son olarak, TOPSIS yöntemi tarafından 2014-2018 dönemi için önerilen performans sıralamaları arasındaki ilişkiyi incelenmiş ve genel olarak performans değerleri arasında anlamlı ve pozitif bir ilişki bulunmuştur.

Keywords

TOPSIS Çok Kriterli Karar Verme Yöntemleri Finansal Performans.

References

  • Akbulut, R. and Rençber, Ö. F. (2015). Veri Zarflama ve Lojistik Regresyon Analizi ile Çimento Işletmelerinde Finansal Performansa Dayalı Etkinliklerin Değerlendirilmesi. Journal of Alanya Faculty of Business, 7(3), s.103–113.
  • Antonucci, T. C., Ajrouch, K. J., and Manalel, J. A. (2017). Social Relations and Technology: Continuity, Context, and Change. Innovation in Aging, 3(1), s.1-9.
  • Benitez, J. M., Martín, J. C., and Román, C. (2007). Using Fuzzy Number for Measuring Quality of Service in The Hotel Industry. Tourism Management, 28(2), s.544–555.
  • Bulgurcu, B. K. (2012). Application of TOPSIS technique for financial performance evaluation of technology firms in Istanbul stock exchange market. Procedia-Social and Behavioral Sciences, 62, s.1033–1040.
  • Cebeci, G. and Özbilgin, I. G. (2015). Borsa İstanbul Bilişim Endeksinde Yer Alan Şirketlerin Kurumsal Yönetim ve Finansal Performans Açısından Değerlendirilmesi, Gazi Üniversitesi Sosyal Bilimler Dergisi, 2(4), s.47–64.
  • Chater, N. Oaksford, M., Nakisa, R. and Redington, M. (2003). Fast, frugal, and rational: How rational norms explain behavior. Organizational Behavior and Human Decision Processes, 90(1), s. 63-86.
  • Chen, C. T. (2000). Extensions of The TOPSIS for Group Decision-Making Under Fuzzy Environment. Fuzzy Sets and Systems, 114(1), s.1–9.
  • Ercan, M.K. and Ban, U. (2005). Financial Management. Ankara: Fersa Publication.
  • Ertuğrul, İ. and Karakaşoğlu, N. (2009). Performance evaluation of Turkish cement firms with fuzzy analytic hierarchy process and TOPSIS methods. Expert Systems with Applications, 36(1), s.702-715.
  • Fenyves, V., Tarnóczi, T. and Zsidó, K. (2015). Financial Performance Evaluation of agricultural enterprises with DEA Method. Procedia Economics and Finance, 32, s.423-431.
  • Guerrero-Baena, M. D., Gómez-Limón, J. A. and Fruet Cardozo, J. V. (2014). Are multi-criteria decision making techniques useful for solving corporate finance problems? A bibliometric analysis. Revista de Metodos Cuantitativos para la Economia y la Empresa, 17, s.60-79.
  • Hwang, C. L. and Yoon, K. (1981). Multiple attribute decision making: Methods and applications. New York, NY: Springer-Verlag.
  • Jiang, J., Chen, Y.-W., Tang, D.-W. and Chen, Y.-W. (2010). TOPSIS with belief structure for group belief multiple criteria decision making. International Journal of Automation and Computing, 7(3), s. 359-364.
  • Konuk, F. (2018). Financial and Performance Analysis of Food Companies: Application of TOPSIS and DEA. Manas Journal of Social Studies, 7(3), s. 381–390.
  • Kuzey, P. (2007). Avrupa Birliği'ne Üyelik Perspektifinde Türkiye'de Telekomünikasyon Sektörüne Bir Bakış. Bütçe Dünyası, 25(2), s. 28–39.
  • Lee, K. R. (2002). Impacts of Information Technology On Society in The New Century. Business and Management, 5(6), s.46–55.
  • Lipaj, D. and Davidavičienė, V. (2013). Influence of Information Systems On Business Performance. Science – Future of Lithanuia, 5(1), s. 38–45.
  • Myšková, R. and Hájek, P. (2017). Comprehensive Assessment of Firm Financial Performance Using Financial Ratios and Linguistic Analysis of Annual Reports. Journal of International Studies, 10(4), s. 96–108.
  • Okay, G. and Köse, A. (2015). Financial Performance Analysis of Brokerage Firms Quoted on the Istanbul Stock Exchange Using the TOPSIS Method of Analysis. International Journal of Business and Social Science, 6(1), s.68-77.
  • Opricovic, S. and Tzeng, G. H. (2004). Compromise Solution by MCDM Methods: A Comparative Analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), s.445–455.
  • Orçun, Ç. and Eren, B. (2017). TOPSIS Yöntemi ile Finansal Performans Değerlendirmesi: XUTEK Tarafından Bir Uygulama. Muhasebe ve Finansman Dergisi, 75, s.139–154.
  • Özlü, F. (2017). The Advent of Turkey’s Industry 4.0. Turkish Policy Quarterly, 16(2), s.29–38.
  • Price, J. E., Haddock, M. D. and Brock, H. R. (1993). College Accounting (10th ed.). New York: Macmillan/McGraw-Hill.
  • Public Disclosure Platform – KAP. (2019). Financial statements. Retrieved from https://www.kap.org.tr/en
  • Saaty, L.T. (1980). The Analytic Hierarchy Process. U.S.A.: McGraw-Hill.
  • Savrul, B. K. and Kılıç, D. C. (2011). Küreselleşme Sürecinde Bilişim Sektörünün Türkiye ve Avrupa Birliği Ülkeleri'nin Ekonomileri Üzerindeki Etkileri. İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 61(2), s.257–289.
  • Shaverdi, M., Ramezani, I., Tahmasebi, R. and Rostamy, A. A. A. (2016). Combining fuzzy AHP and fuzzy TOPSIS with financial ratios to design a novel performance evaluation model. International Journal of Fuzzy Systems, 18(2), s.248-262.
  • Taani, K. (2011). The Effect of Financial Ratios, Firm Size and Cash Flows from Operating Activities On Earnings Per Share: An Applied Study On Jordanian Industrial Sector. International Journal of Social Sciences and Humanity Studies, 3(1), s.197–205.
  • Turkish Informatics Industry Assocation – TUBISAD. (2019). Information and communication technologies sector, market data report in 2018. Retrieved from http://www.tubisad.org.tr/en/images/pdf/tubisad_ict_2019_final_eng_2019 0521_1040.pdf
  • Türkmen, S. Y. and Çağıl, G. (2012). İMKB’ye Kote Bilişim Sektörü Şirketlerinin Finansal Performanslarının TOPSIS Yöntemi ile Değerlendirilmesi. Maliye ve Finans Yazıları, 95(1), s.59–78.
  • Uygurtürk, H. and Korkmaz, T. (2014). Finansal Performansın TOPSIS Çok Kriterli Karar Verme Yöntemi İle Belirlenmesi: Ana Metal Sanayi İşletmeleri Üzerine Bir Uygulama. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 7(2), 95–115.
  • Wang, Y. M. and Elhag, T. M. S. (2006). Fuzzy TOPSIS Method Based On Alpha Level Sets with an Application to Bridge Risk Assessment. Expert Systems with Applications, 31(2), s.309–319.
  • Yorulmaz, R. (2013). Construction of A Regional Financial Inclusion Index in Turkey. Journal of BRSA Banking and Financial Markets, 7(1), s.79-101.
There are 33 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Mustafa Özgün Atalay

Meltem Altın This is me

Publication Date September 30, 2020
Published in Issue Year 2020 Volume: 4 Issue: 2

Cite

APA Atalay, M. Ö., & Altın, M. (2020). THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES. International Journal of Social And Humanities Sciences, 4(2), 205-228.
AMA Atalay MÖ, Altın M. THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES. IJSHS. September 2020;4(2):205-228.
Chicago Atalay, Mustafa Özgün, and Meltem Altın. “THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES”. International Journal of Social And Humanities Sciences 4, no. 2 (September 2020): 205-28.
EndNote Atalay MÖ, Altın M (September 1, 2020) THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES. International Journal of Social And Humanities Sciences 4 2 205–228.
IEEE M. Ö. Atalay and M. Altın, “THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES”, IJSHS, vol. 4, no. 2, pp. 205–228, 2020.
ISNAD Atalay, Mustafa Özgün - Altın, Meltem. “THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES”. International Journal of Social And Humanities Sciences 4/2 (September 2020), 205-228.
JAMA Atalay MÖ, Altın M. THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES. IJSHS. 2020;4:205–228.
MLA Atalay, Mustafa Özgün and Meltem Altın. “THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES”. International Journal of Social And Humanities Sciences, vol. 4, no. 2, 2020, pp. 205-28.
Vancouver Atalay MÖ, Altın M. THE EVALUATION OF FINANCIAL PERFORMANCE THROUGH THE TOPSIS MULTIPLE CRITERIA DECISION-MAKING METHOD: AN APPLICATION TO INFORMATION TECHNOLOGY INDUSTRIES. IJSHS. 2020;4(2):205-28.
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