Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods
AbstractFinancial 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 M...
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Mehmet Akif Ersoy University
2024-09-01
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| Series: | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
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| Online Access: | https://dergipark.org.tr/en/download/article-file/3847878 |
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| author | Süreyya Yılmaz Özekenci |
| author_facet | Süreyya Yılmaz Özekenci |
| author_sort | Süreyya Yılmaz Özekenci |
| collection | DOAJ |
| description | AbstractFinancial 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. |
| format | Article |
| id | doaj-art-7af5ba47b70a449cb8db5d372e4fe230 |
| institution | Kabale University |
| issn | 2149-1658 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Mehmet Akif Ersoy University |
| record_format | Article |
| series | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
| spelling | doaj-art-7af5ba47b70a449cb8db5d372e4fe2302025-01-27T13:05:55ZengMehmet Akif Ersoy UniversityMehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi2149-16582024-09-011131184121110.30798/makuiibf.1465069273Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS MethodsSüreyya Yılmaz Özekenci0https://orcid.org/0000-0003-4150-4101Çağ ÜniversitesiAbstractFinancial 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.https://dergipark.org.tr/en/download/article-file/3847878financial performancesustainabilitybistmcdm |
| spellingShingle | Süreyya Yılmaz Özekenci Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi financial performance sustainability bist mcdm |
| title | Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods |
| title_full | Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods |
| title_fullStr | Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods |
| title_full_unstemmed | Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods |
| title_short | Financial Performance Measurement of Companies in the BIST Sustainability 25 Index with LBWA and MEREC-based CRADIS Methods |
| title_sort | financial performance measurement of companies in the bist sustainability 25 index with lbwa and merec based cradis methods |
| topic | financial performance sustainability bist mcdm |
| url | https://dergipark.org.tr/en/download/article-file/3847878 |
| work_keys_str_mv | AT sureyyayılmazozekenci financialperformancemeasurementofcompaniesinthebistsustainability25indexwithlbwaandmerecbasedcradismethods |