FINANCIAL PERFORMANCE EVALUATION USING FUZZY GRA AND FUZZY ENTROPY METHODS: WHOLESALE AND RETAIL INDUSTRY
Öz
Financial evaluation is the starting point for making business plan and strategy, therefore, this study aimed mainly to present an effective approach to evaluate the financial performance of the BIST Wholesale and Retail Industry firms listed on Istanbul Stock Exchange over the period of 2015-2018. The Fuzzy Grey Rational Analysis (GRA) method is used to evaluate financial performance of different alternatives considering the distances between fuzzy sets based on the grey and fuzzy theory. While, Fuzzy Entropy method is used to determine the relative importance of 15 financial criteria (ratios). Based on a comprehensive financial evaluation framework the study ranks the financial performance of the 17 wholesale and retail trade index firms and shows that MIPAZ firm has the best relative financial performance. Moreover, net profit margin ratio has the highest relative importance indicator for evaluating financial performance. A sensitivity analysis is presented for confirming validity of the proposed model, in addition to a comparison between fuzzy GRA and GRA is demonstrated to test the reliability of the proposed model.
Anahtar Kelimeler
Financial Performance Evaluation,Financial Ratio,Fuzzy GRA,Fuzzy Entropy
Kaynakça
- Ahrendsen, B.L. and Katchova, A.L. (2012). Financial ratio analysis using ARMS data. Agricultural Finance Review, 72(2), 262-272.
- Aras, G., Tezcan, N. and Kutlu Furtuna, O. (2018). Comprehensive evaluation of the financial performance for intermediary institutions based on multi-criteria decision-making method. Journal of Capital Markets Studies, 2(1), 37-49.
- Bertoneche, M. and Knight, R. (2001). Financial Performance, Chapter 3: Assessing financial health, 74-105.
- Borhan, H., Naina Mohamed, R. and Azmi, N. (2014). The impact of financial ratios on the financial performance of a chemical company: The case of Lyondell Basell Industries. World Journal of Entrepreneurship, Management and Sustainable Development, 10(2), 154-160.
- Chadwick, L. (1984). Comparing financial performance: Ratio analysis and retail management. Retail and Distribution Management, 12(2), 35-37.
- Chan, T. K. and Abdul-Aziz, A. R. (2017). Financial performance and operating strategies of Malaysian property development companies during the global financial crisis. Journal of Financial Management of Property and Construction, 22(2), 174-191.
- Deng, J. L. (1982). Control problems of grey systems. Sys. & Contr. Lett., 1(5), 288-294.
- Deng, J. L. (1988). Properties of relational space for grey system. Grey System, China Ocean, Beijing.
- Deng, J. L. (1989). Introduction to Grey System Theory. The Journal of Grey System, 1(1), 1-24.
- Dimara, E., Skuras, D., Tsekouras, K. and Goutsos, S. (2004). Strategic orientation and financial performance of firms implementing ISO 9000. International Journal of Quality & Reliability Management, 21(1), 72-89.