Financial Performance Evaluation of Companies Listed in Corporate Governance and Sustainability Indices: Application of the IVSF-RBNAR Method

Year 2025, Volume: 1 Issue: 1, 36 - 60, 30.01.2025

Karahan Kara , Galip Cihan Yalçın , Hamide Özyürek

Abstract

Companies strive to improve their financial conditions not only to gain a competitive advantage but also to be listed on corporate governance and sustainability indices. Companies listed in the Corporate Gover2 nance Index are understood to have high levels of corporate governance success, whereas those listed in the Sustainability 25 Index are recognised for being long2term environmentally sustainable organisations. It is evident that companies listed in both indices not only implement successful governance practices but also adopt sustainability principles. The primary motivation of this research is to evaluate the financial performance of companies listed on both indices. Accordingly, the main objective of this study is to develop a method for calculating the financial performance of these companies and to demonstrate its applicability. In this study, which is approached as a decision problem using the multi2criterion decision2 making (MCDM) approach, the IVSF2RBNAR (Interval2Valued Spherical Fuzzy 2 Reference2Based Normalised Assessment Ranking) method is proposed for calculating financial performance. This method allows criterion weighting based on expert opinions and performance ranking based on reference distance. In the application phase of this study, the financial performance levels of the ten companies listed in The Corporate Governance Index and The Sustainability 25 Index were determined by considering seven financial ratio indicators. As a result, Doğan Companies Group Holding Inc. was identified as having the highest financial performance. The most significant financial ratio was determined to be Return on Assets (ROA). The study also presents research implications and suggests future research directions.

Keywords

Financial Performance Analysis, Corporate Governance Index, Sustainability 25 Index, Interval2Valued Spherical Fuzzy Sets, Reference-Based Normalised Assessment Ranking Method

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