A Comparative Study of Public Offerings on Borsa Istanbul with CRITIC and EDAS Methods

Abdullah Kiliã‡arslan and Huseyin Ergun

Fiscaoeconomia, 2023, issue 3

Abstract: This research aims to conduct a comparative analysis using the multiple criteria decision-making methods of CRITIC and EDAS on the initial public offerings (IPOs) in Borsa Istanbul. The study examines the financial performance of 40 companies that underwent IPOs in 2022 and analyzes the relationships between financial performance, sales/price ratio, and stock market performance. Furthermore, the evaluation of the IPO companies is conducted based on the "Participation Finance Principles". The financial performance criteria used in the study encompass liquidity, financial structure, activity, and profitability. These criteria serve to measure the financial soundness, operational efficiency, and profitability of the companies. The methodology employed in this research consists of the CRITIC and EDAS methods, which are effective and reliable techniques in addressing multiple criteria decision-making problems. While the CRITIC method is used to determine the weights among the criteria, the EDAS method is utilized for ranking the alternatives. The findings of the study reveal significant relationships between the financial performance of IPO companies, sales/price ratio, and stock market performance. Moreover, adherence to the principles of participation finance is identified as a crucial factor in the evaluation of the companies. This study contributes to the existing research on IPOs in Borsa Istanbul. The utilization of CRITIC and EDAS methods enables more objective and consistent results in financial performance evaluations.

Keywords: Financial Performance Evaluation; MCDM; Initial Public Offerings (search for similar items in EconPapers)
JEL-codes: G12 G30 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:230311

DOI: 10.25295/fsecon.1304387

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