IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2024-06-41.html
   My bibliography  Save this article

Financial Performance Analysis of Energy Companies Using Multi-Criteria Decision-Making Techniques: An Application in the BIST Electricity, Gas and Water Sector

Author

Listed:
  • Azize Kahramani Koc

    (Department of International Trade and Logistics, Faculty of Economics and Administrative Sciences, Kafkas University, Kars, Turkey)

  • Alper Tazegul

    (Department of International Trade and Logistics, Faculty of Economics and Administrative Sciences, Kafkas University, Kars, Turkey)

  • Savas Durmus

    (Department of International Trade and Logistics, Faculty of Economics and Administrative Sciences, Kafkas University, Kars, Turkey)

Abstract

Energy plays a vital role in the macroeconomic development of countries. The increase in energy consumption and the increase in the number of energy companies are among the basic dynamics of country development and growth. Enhancing the financial performance of companies operating in the energy sector strengthens the competitive power of countries at both national and international levels. In this context, this study aims to determine the financial performance rankings of companies operating in the energy sector in Turkey over a 10-year period, identifying the most successful and least successful periods over the years. Using data from energy sector companies listed on Borsa Istanbul (BIST) between 2013 and 2022, after determining the research criteria, the weights of these criteria were calculated using the Entropy method. Subsequently, considering the criteria weights, the performance rankings of energy companies were determined year by year using the MAIRCA method. According to the results of the Entropy analysis, when the importance level is evaluated, the most significant criterion in 2013 was the Liquidity Ratio (LR), in 2014, 2017, 2018, and 2019 it was the Gross Profit Growth (GPG) criterion, in 2015 it was the Current Ratio (CR) criterion, in 2016 and 2022 it was the Net Profit Growth (NPG) criterion, and in 2020 it was the Net Profit Growth (NPG) criterion. Finally, in 2021, the most important criterion was determined to be EBITDA Growth (EBG). Furthermore, based on the MAIRCA analysis, the reasons behind the most successful and least successful years of the companies were explained using financial and activity reports, as well as special situation disclosure notifications obtained from the Public Disclosure Platform (PDP).

Suggested Citation

  • Azize Kahramani Koc & Alper Tazegul & Savas Durmus, 2024. "Financial Performance Analysis of Energy Companies Using Multi-Criteria Decision-Making Techniques: An Application in the BIST Electricity, Gas and Water Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 379-391, October.
    • Handle: RePEc:eco:journ1:2024-06-41
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/17609/8391
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/17609
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stamatios Ntanos & Michalis Skordoulis & Grigorios Kyriakopoulos & Garyfallos Arabatzis & Miltiadis Chalikias & Spyros Galatsidas & Athanasios Batzios & Apostolia Katsarou, 2018. "Renewable Energy and Economic Growth: Evidence from European Countries," Sustainability, MDPI, vol. 10(8), pages 1-13, July.
    2. Anas A. Makki & Ammar Y. Alqahtani, 2023. "Capturing the Effect of the COVID-19 Pandemic Outbreak on the Financial Performance Disparities in the Energy Sector: A Hybrid MCDM-Based Evaluation Approach," Economies, MDPI, vol. 11(2), pages 1-21, February.
    3. Eyüboğlu, Kemal & Çelik, Pelin, 2016. "Financial Performance Evaluation of Turkish Energy Companies with Fuzzy AHP and Fuzzy TOPSIS Methods," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 7(3), pages 21-37, July.
    4. Zhang, Hong & Gu, Chao-lin & Gu, Lu-wen & Zhang, Yan, 2011. "The evaluation of tourism destination competitiveness by TOPSIS & information entropy – A case in the Yangtze River Delta of China," Tourism Management, Elsevier, vol. 32(2), pages 443-451.
    5. Ioannis Katsampoxakis & Apostolos Christopoulos & Petros Kalantonis & Vasileios Nastas, 2022. "Crude Oil Price Shocks and European Stock Markets during the COVID-19 Period," Energies, MDPI, vol. 15(11), pages 1-14, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Errikos Delegkos & Michalis Skordoulis & Petros Kalantonis & Aggelia Xanthopoulou, 2022. "Integrated Reporting and Value Relevance in the Energy Sector: The Case of European Listed Firms," Energies, MDPI, vol. 15(22), pages 1-13, November.
    2. Ismael Pérez-Franco & Agustín García-García & Juan J. Maldonado-Briegas, 2020. "Energy Transition Towards a Greener and More Competitive Economy: The Iberian Case," Sustainability, MDPI, vol. 12(8), pages 1-14, April.
    3. Belqasem Aljafari & Jasmin Pamela Stephenraj & Indragandhi Vairavasundaram & Raja Singh Rassiah, 2022. "Steady State Modeling and Performance Analysis of a Wind Turbine-Based Doubly Fed Induction Generator System with Rotor Control," Energies, MDPI, vol. 15(9), pages 1-19, May.
    4. Mónica de Castro-Pardo & Pascual Fernández Martínez & Amelia Pérez Zabaleta & João C. Azevedo, 2021. "Dealing with Water Conflicts: A Comprehensive Review of MCDM Approaches to Manage Freshwater Ecosystem Services," Land, MDPI, vol. 10(5), pages 1-32, April.
    5. Wanke, Peter Fernandes & Chiappetta Jabbour, Charbel José & Moreira Antunes, Jorge Junio & Lopes de Sousa Jabbour, Ana Beatriz & Roubaud, David & Sobreiro, Vinicius Amorim & Santibanez Gonzalez‬, Erne, 2021. "An original information entropy-based quantitative evaluation model for low-carbon operations in an emerging market," International Journal of Production Economics, Elsevier, vol. 234(C).
    6. Carayannis, Elias G. & Ferreira, Fernando A.F. & Bento, Paulo & Ferreira, João J.M. & Jalali, Marjan S. & Fernandes, Bernardo M.Q., 2018. "Developing a socio-technical evaluation index for tourist destination competitiveness using cognitive mapping and MCDA," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 147-158.
    7. Daniela Nicoleta Sahlian & Adriana Florina Popa & Raluca Florentina Creţu, 2021. "Does the Increase in Renewable Energy Influence GDP Growth? An EU-28 Analysis," Energies, MDPI, vol. 14(16), pages 1-16, August.
    8. Llorca, Manuel & Rodriguez-Alvarez, Ana, 2024. "Economic, environmental, and energy equity convergence: Evidence of a multi-speed Europe?," Ecological Economics, Elsevier, vol. 219(C).
    9. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    10. Evgeny Lisin & Wadim Strielkowski & Veronika Chernova & Alena Fomina, 2018. "Assessment of the Territorial Energy Security in the Context of Energy Systems Integration," Energies, MDPI, vol. 11(12), pages 1-14, November.
    11. Huang, Jen-Hung & Peng, Kua-Hsin, 2012. "Fuzzy Rasch model in TOPSIS: A new approach for generating fuzzy numbers to assess the competitiveness of the tourism industries in Asian countries," Tourism Management, Elsevier, vol. 33(2), pages 456-465.
    12. Pei Dang & Zhanwen Niu & Shang Gao & Lei Hou & Guomin Zhang, 2020. "Critical Factors Influencing the Sustainable Construction Capability in Prefabrication of Chinese Construction Enterprises," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    13. Dias Satria & Joshi Maharani Wibowo, 2021. "Big Data Analysis of Sustainable Tourism Competitiveness in East Java Province," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 14(2), pages 189-203.
    14. Faruk Dayi & Ali Cilesiz & Mustafa Yucel, 2024. "Strategic Management of Clean Energy Investments: Financial Performance Insights by Using BWM-based VIKOR and TOPSIS Methods," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 566-574, September.
    15. Luan Chen & Eric Ng & Shyh-Chang Huang & Wei-Ta Fang, 2017. "A Self-Evaluation System of Quality Planning for Tourist Attractions in Taiwan: An Integrated AHP-Delphi Approach from Career Professionals," Sustainability, MDPI, vol. 9(10), pages 1-18, September.
    16. Magdalena Tutak & Jarosław Brodny & Dominika Siwiec & Robert Ulewicz & Peter Bindzár, 2020. "Studying the Level of Sustainable Energy Development of the European Union Countries and Their Similarity Based on the Economic and Demographic Potential," Energies, MDPI, vol. 13(24), pages 1-31, December.
    17. Pinglin He & Jing Ning & Zhongfu Yu & Hao Xiong & Huayu Shen & Hui Jin, 2019. "Can Environmental Tax Policy Really Help to Reduce Pollutant Emissions? An Empirical Study of a Panel ARDL Model Based on OECD Countries and China," Sustainability, MDPI, vol. 11(16), pages 1-32, August.
    18. Yung-Lun Liu & Pen-Fa Ko & Jui-Te Chiang, 2021. "Developing an Evaluation Model for Monitoring Country-Based Tourism Competitiveness," SAGE Open, , vol. 11(3), pages 21582440211, September.
    19. Yan Wang & Ranran Zhao, 2024. "Coupling coordination development between eco-investment, tourism, and logistics in Anhui Province, China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    20. Khurram Shehzad & Umer Zaman & Ana Ercília José & Emrah Koçak & Paulo Ferreira, 2021. "An Officious Impact of Financial Innovations and ICT on Economic Evolution in China: Revealing the Substantial Role of BRI," Sustainability, MDPI, vol. 13(16), pages 1-17, August.

    More about this item

    Keywords

    Energy Sector; Financial Performance; Multi-Criteria Decision-making Methods; Türkiye;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2024-06-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.