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Financial Performance Ranking of the Automotive Industry Firms in Turkey: Evidence from an Entropy-Weighted Technique

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  • Berna Bulgurcu

    (ukurova University, Business Administration Department, Adana - Turkey)

Abstract

This paper evaluates the financial performance of the firms in the Turkish automotive industry in the Istanbul Stock Exchange Market (ISEM) by applying the Technique for Order Preference by Similarity to Ideal Solution Methods (TOPSIS). The paper aims to measure and compare the financial performance ranking of these firms. The performances of these firms for a timeperiod between 2009 and 2012 are assessed and ranked by integrating the TOPSIS method and an entropy-weighted technique that is used to identify the weights of the financial ratios. According to the results, the F-M Izmit Piston firm has the highest performance rate for four years whereas the Parsan firm's performance index value is the lowest one. Such companies as Ford Auto, Anadolu Isuzu, Ege Industry, Ditas Dogan have stable results for the following four years. This technique, which can also be defined as the Enthropy-Weighted TOPSIS, is understood to be a significant multi-criteria decisionmaking method in terms of providing objective assessment.

Suggested Citation

  • Berna Bulgurcu, 2013. "Financial Performance Ranking of the Automotive Industry Firms in Turkey: Evidence from an Entropy-Weighted Technique," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 844-851.
    • Handle: RePEc:eco:journ1:2013-04-6
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    References listed on IDEAS

    as
    1. Feng, Cheng-Min & Wang, Rong-Tsu, 2000. "Performance evaluation for airlines including the consideration of financial ratios," Journal of Air Transport Management, Elsevier, vol. 6(3), pages 133-142.
    2. Spronk, Jaap & Hallerbach, Winfried, 1997. "Financial modelling: Where to go? With an illustration for portfolio management," European Journal of Operational Research, Elsevier, vol. 99(1), pages 113-125, May.
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    Cited by:

    1. Kumaran, Sunitha, 2022. "Financial performance index of IPO firms using VIKOR-CRITIC techniques," Finance Research Letters, Elsevier, vol. 47(PA).
    2. P. R. Weerathunga & Cheng Xiaofang & W. H. M.S. Samarathunga & P. M. B. Jayathilake, 2020. "The Relative Effect of Growth of Economy, Industry Expansion, and Firm-Specific Factors on Corporate Hotel Performance in Sri Lanka," SAGE Open, , vol. 10(2), pages 21582440209, April.
    3. Prageeth Roshan Weerathunga & Chen Xiaofang & Manoj Samarathunga, 2019. "Firm-specific and Contextual Determinants of Sri Lankan Corporate Hotel Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 213-224.
    4. Bruno Ricca & Massimiliano Ferrara & Salvatore Loprevite, 2023. "Searching for an effective accounting-based score of firm performance: a comparative study between different synthesis techniques," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3575-3602, August.
    5. Chia-Chen Yang & Shang-Ling Ou & Li-Chang Hsu, 2019. "A Hybrid Multi-Criteria Decision-Making Model for Evaluating Companies’ Green Credit Rating," Sustainability, MDPI, vol. 11(6), pages 1-23, March.

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    More about this item

    Keywords

    Financial Ratios; Entropy Technique; the TOPSIS;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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