A new evaluation model for corporate financial performance using integrated CCSD and FCM-ARAS approach

Jalil Heidary Dahooie, Edmundas Kazimieras Zavadskas, Amir Salar Vanaki, Hamid Reza Firoozfar, Mahnaz Lari and Zenonas Turskis

Economic Research-Ekonomska Istraživanja, 2019, vol. 32, issue 1, 1088-1113

Abstract: The financial performance is an indicator of financial stability, health and condition of any organisation. It could be utilised as a proper measure of the firm’s credibility and its ability to pay off debts. Financial institutions use this measure to determine the lending policy and applicants’ credits. This study proposes a model based on the CCSD weighing method and hybrid FCM-ARAS approach for clustering and evaluating the financial performance to enable banks to identify target groups and design appropriate and relevant policies. Based on previous studies and the views of senior financial managers of a public bank in Iran, eight economic criteria were evaluated. The presented method was used to assess the financial performance of 58 manufacturing companies applying for loans from a federal bank in Iran. However, the CCSD method was used to calculate criteria weights, and a hybrid FCM-ARAS approach was developed and applied to financial evaluation and clustering the companies. The use of the CCSD method can eliminate errors caused by subjective models and human judgments, and increase the accuracy of the assessment. In this study, the debt ratio and equity to total assets and ROA were identified as the main criteria to assess financial performance.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2019.1613250 (text/html)
Access to full text is restricted to subscribers.

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:taf:reroxx:v:32:y:2019:i:1:p:1088-1113

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2019.1613250

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().