Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods
Abstract
Abstract
Financial performance refers to the assessment of a firm’s capacity to generate profits and manage its financial assets effectively during a specific period of time. This study addresses the evaluation of financial performance of companies in the BIST Sustainability 25 Index using a hybrid MCDM method. For this investigation, nine criteria, namely, acid-test ratio, asset turnover, current ratio, debt ratio, EBITDA, net profit margin, return on equity, stock return and stock turnover are used to determine the financial performance of companies. In this study, the weight of criteria is calculated using both subjective (LBWA) and objective (MEREC) weighting approaches. After the weight of criteria is determined, the financial performance of companies is ranked using the CRADIS method. The results showed that EBITDA and Stock turnover are the most and least important criteria, respectively. According to results obtained from the CRADIS method, Ereğli Iron-Steel, Enka construction and Ford Otosan have the highest financial performance, while Vestel, Arçelik and Çimsa have the lowest financial performance in the period of 2018 and 2022. Additionally, the robustness and validity of the results are tested by various MCDM methods, namely, ARAS, COPRAS, EDAS, MABAC, MAIRCA, MARCOS, TOPSIS, CoCoSo and MAUT.
Keywords
References
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Abstract
References
- Abdel-Basset, M., Ding, W., Mohamed, R., and Metawa, N. (2020). An integrated plithogenic MCDM approach for financial performance evaluation of manufacturing industries. Risk Management, 22(3), 192-218. https://doi.org/10.1057/s41283-020-00061-4
- Adali, E. A., Öztaş, G. Z., Öztaş, T., and Tuş, A. (2022). Assessment of European cities from a smartness perspective: An integrated grey MCDM approach. Sustainable Cities and Society, 84, 104021. https://doi.org/10.1016/j.scs.2022.104021
- Akbulut, R., and Rençber, Ö. F. (2015). BİST’te imalat sektöründeki işletmelerin finansal performansları üzerine bir araştırma. Muhasebe ve Finansman Dergisi, (65), 117-136. https://doi.org/10.25095/mufad.396520
- Zhang, X., Wang, C., Li, E., and Xu, C. (2014). Assessment model of ecoenvironmental vulnerability based on improved entropy weight method. The Scientific World Journal, 2014. 1-7. https://doi.org/10.1155/2014/797814
- Žižović, M., and Pamučar, D. (2019). New model for determining criteria weights: Level Based Weight Assessment (LBWA) model. Decision Making: Applications in Management and Engineering, 2(2), 126-137. https://doi.org/10.31181/dmame1902102z
Details
| Primary Language | English |
|---|---|
| Subjects | Financial Economy |
| Journal Section | Research Articles |
| Authors | |
| Publication Date | September 30, 2024 |
| Submission Date | April 4, 2024 |
| Acceptance Date | August 23, 2024 |
| Published in Issue | Year 2024 Volume: 11 Issue: 3 |
