FINANCIAL PERFORMANCE MEASUREMENT IN BUSINESSES USING MCDM TECHNIQUES: AN APPLICATION ON BIST XKURY BUSINESSES (2015-2019)

Abstract

The aim of this study is to analyse the financial ratios of 25 companies listed on the BIST XKURY index by constructing a model using Multi-Criteria Decision-Making techniques (TOPSIS, ELECTRE, GRA, VIKOR, PROMETHEE II, MOORA) and the CRITIC weighting method, which are commonly used in decision-making problems. Within this scope, the 15 financial ratios of the 25 companies listed on the BIST XKURY index between 2015 and 2019 were subjected to analysis. In addition to the rankings obtained with MCDM, the scores used to generate these rankings were also used in the study. The calculated MCDM results were compared with corporate governance rating scores and stock returns from two perspectives: based on rankings and based on scores, and a very low-grade relationship was found between them. Additionally, the MCDM scores and rankings for the years 2014-2018 were compared with those for 2019, and it was observed that MCDM results could be used to predict future years. The main findings indicate that MCDM methods are significantly more reliable for predicting financial performance trends than for correlating with market returns or governance ratings.