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Evaluating financial performance of Indian IT firms: an application of a multi-criteria decision-making technique

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  • Sarveshwar Kumar Inani
  • Rohit Gupta

Abstract

This study evaluates the financial performance of nine information technology (IT) firms, listed in National Stock Exchange of India, for a period of 5 years from 2011 to 2015. A multi-criteria decision-making technique (MCDM) - Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) - is used to rank the firms according to their financial performance, by considering 10 frequently used financial ratios as multiple criteria. The results indicate that TCS firm has been the top performer for the 4 years out of a total 5-year period of the analysis, whereas the firm Wipro is found to have the lowest rank during the same period. The lower ranking firms can revise their strategies by analysing the policies of better-performing firms. These results provide useful insights to identify the consistent and stable players in terms of financial performance. These findings could be useful for the managers at different levels, various stakeholders in the firms, investors and investment analysts.

Suggested Citation

  • Sarveshwar Kumar Inani & Rohit Gupta, 2017. "Evaluating financial performance of Indian IT firms: an application of a multi-criteria decision-making technique," International Journal of Behavioural Accounting and Finance, Inderscience Enterprises Ltd, vol. 6(2), pages 126-139.
    • Handle: RePEc:ids:ijbeaf:v:6:y:2017:i:2:p:126-139
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    Cited by:

    1. Hari Darshan Arora & Anjali Naithani, 2023. "Some distance measures for triangular fuzzy numbers under technique for order of preference by similarity to ideal solution environment," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 701-719, June.
    2. Ahmet Kaya & Dragan Pamucar & Hasan Emin Gürler & Mehmet Ozcalici, 2024. "Determining the financial performance of the firms in the Borsa Istanbul sustainability index: integrating multi criteria decision making methods with simulation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-44, December.

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