A Comparative Analysis of CRITIC-Based Objective Weighting and Equal Weighting Strategies: Evidence from the BIST Electricity Sector

In this study, the financial performance of firms in the BIST Electricity Index (XELKT) was appraised using Multi-Criteria Decision-Making Methods (MCDM) with the data from the first quarter of 2025. Seven criteria were used for financial performance ranking: five are benefit-oriented, and two are cost-oriented. The benefit-oriented criteria are current ratio, asset turnover ratio, receivables turnover ratio, return on equity, and net profit margin. The cost-oriented criteria are EV/EBITDA and trade payables turnover ratio. In this study, criteria weights were calculated both using the CRITIC method and by assigning equal weights, with performance rankings subsequently conducted through the TOPSIS method. According to the findings of the study, the most significant criterion is the Asset Turnover Ratio. Within the scope of the research, the hypothesis that portfolios constructed through objective weighting using the CRITIC method yield higher periodic returns compared to equal weighting was tested. Furthermore, the return superiority of portfolios composed of high-performance stocks within the objective weighting framework was examined. The analysis results indicate that portfolios constructed with objective weighting offer similar periodic returns to those of equally weighted portfolios. This finding is consistent with the results of the study introduced to the literature by DeMiguel et al. (2006). On the other hand, it was determined that portfolios composed of stocks ranked as successful based on objective weighting did not yield higher periodic returns compared to other portfolios.