Determining the financial performance of the firms in the Borsa Istanbul sustainability index: integrating multi criteria decision making methods with simulation

Ahmet Kaya (), Dragan Pamucar (), Hasan Emin Gürler () and Mehmet Ozcalici ()
Additional contact information
Ahmet Kaya: Akdeniz University
Dragan Pamucar: University of Belgrade
Hasan Emin Gürler: Akdeniz University
Mehmet Ozcalici: Kilis 7 Aralık University

Financial Innovation, 2024, vol. 10, issue 1, 1-44

Abstract: Abstract Regardless of the industry in which a company operates, evaluating corporate performance is one of the most critical and vital processes; the most essential and prominent performance evaluation is related to financial performance. Appropriate performance analysis is complex and critical for decision-makers in different financial performance factors; thus, a methodological framework is needed to solve such complex decision problems. Therefore, this research aims to rank the companies included in the sustainability index (excluding banks) in Turkey by considering their financial performance. The criteria weights were determined using the full consistency method (FUCOM) by considering the evaluations of four experts. The firms were ranked using nine multi-criteria decision-making methods. The consensus among the nine rankings was ensured with the Copeland technique. The decision matrix includes financial ratios and the stock market performance of the firms; 100,000 FUCOM weights were created with random evaluations to validate the results. The results indicate that the most crucial criterion is the current ratio by considering expert evaluations. Weight simulation indicates that alternative 16 (alternative 21) is superior (inferior) to the other alternatives, even though the weights are determined with random evaluations. Ranking with expert evaluations is similar to the mean of the weight simulation results. The results demonstrate that the proposed framework can be performed as a basis for financial performance ranking.

Keywords: Financial performance; BIST sustainability index; Simulation; MCDM techniques (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1186/s40854-023-00512-3 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:fininn:v:10:y:2024:i:1:d:10.1186_s40854-023-00512-3

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589

DOI: 10.1186/s40854-023-00512-3

Access Statistics for this article

Financial Innovation is currently edited by J. Leon Zhao and Zongyi

More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().