IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v92y2024ics0038012124000508.html
   My bibliography  Save this article

A single-valued neutrosophic CIMAS-CRITIC-RBNAR decision support model for the financial performance analysis: A study of technology companies

Author

Listed:
  • Kara, Karahan
  • Yalçın, Galip Cihan
  • Çetinkaya, Aslı
  • Simic, Vladimir
  • Pamucar, Dragan

Abstract

Financial performance stands as a fundamental performance indicator that reflects companies' current financial conditions, providing information to investors and stakeholders about companies' financial well-being. In this research, a decision support system is developed for identifying the financial performance of companies traded on stock exchanges. This decision support system is based on a multicriteria decision-making (MCDM) approach and neutrosophic logic. The research introduces a novel method for calculating and ranking financial performance, using financial ratio indicators as selection criteria. The importance levels of financial ratio indicators are weighted through two different approaches. In the first approach, expert opinions and criteria importance assessment (CIMAS)-based on single-valued neutrosophic (SVN) sets are utilized for calculation. In the second approach, criteria importance through intercriteria correlation (CRITIC)-based on reference-based normalization processes is employed for criteria weighting. Subsequently, the results of the two criterion weightings are combined to calculate the final criterion weights. The SVN reference-based normalization alternative ranking (RBNAR) method is presented for ranking companies based on their financial performance. Thus, SVN-CIMAS-CRITIC-RBNAR is developed and its algorithm is presented. The novel hybrid decision support model is applied to a case study of technology companies traded on the Borsa Istanbul. The research results support the applicability of the SVN-CIMAS-CRITIC-RBNAR hybrid method. The results of the case study and sensitivity analyses affirm the applicability and robustness of the SVN-CIMAS-CRITIC-RBNAR hybrid model. The research provides detailed implications and insights for financial managers.

Suggested Citation

  • Kara, Karahan & Yalçın, Galip Cihan & Çetinkaya, Aslı & Simic, Vladimir & Pamucar, Dragan, 2024. "A single-valued neutrosophic CIMAS-CRITIC-RBNAR decision support model for the financial performance analysis: A study of technology companies," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:soceps:v:92:y:2024:i:c:s0038012124000508
    DOI: 10.1016/j.seps.2024.101851
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012124000508
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2024.101851?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ling Zhu, 2022. "Sharp Bounds for a Generalized Logarithmic Operator Mean and Heinz Operator Mean by Weighted Ones of Classical Operator Ones," Mathematics, MDPI, vol. 10(10), pages 1-13, May.
    2. Kumaran, Sunitha, 2022. "Financial performance index of IPO firms using VIKOR-CRITIC techniques," Finance Research Letters, Elsevier, vol. 47(PA).
    3. Weng Hoe Lam & Weng Siew Lam & Kah Fai Liew & Pei Fun Lee, 2023. "Decision Analysis on the Financial Performance of Companies Using Integrated Entropy-Fuzzy TOPSIS Model," Mathematics, MDPI, vol. 11(2), pages 1-18, January.
    4. Japhet Osazefua Imhanzenobe & David McMillan, 2020. "Managers’ financial practices and financial sustainability of Nigerian manufacturing companies: Which ratios matter most?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1724241-172, January.
    5. Gulati, Rachita & Charles, Vincent & Hassan, M. Kabir & Kumar, Sunil, 2023. "COVID-19 crisis and the efficiency of Indian banks: Have they weathered the storm?," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    6. Sharif Mohammad Aqabna & Mehmet Aga & Huthayfa Nabeel Jabari, 2023. "Firm Performance, Corporate Social Responsibility and the Impact of Earnings Management during COVID-19: Evidence from MENA Region," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    7. Aristovnik, Aleksander & Yang, Guo-liang & Song, Yao-yao & Ravšelj, Dejan, 2023. "Industrial performance of the top R&D enterprises in world-leading economies: A metafrontier approach," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    8. 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.
    9. Marashdeh, Hazem & Dhiaf, Mohamed M. & Atayah, Osama F. & Nasrallah, Nohade & Frederico, Guilherme F. & Najaf, Khakan, 2023. "Sensitivity of market performance to social risk index: Evidence from global listed companies in logistics and transportation industry," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    10. 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.
    11. Kara, Karahan & Yalçın, Galip Cihan & Acar, Avni Zafer & Simic, Vladimir & Konya, Serkan & Pamucar, Dragan, 2024. "The MEREC-AROMAN method for determining sustainable competitiveness levels: A case study for Turkey," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    12. Yüksel Akay Ünvan & Cansu Ergenç, 2022. "Financial Performance Analysis with the Fuzzy COPRAS and Entropy-COPRAS Approaches," Computational Economics, Springer;Society for Computational Economics, vol. 59(4), pages 1577-1605, April.
    13. Mohamed Abdel-Basset & Weiping Ding & Rehab Mohamed & Noura Metawa, 2020. "An integrated plithogenic MCDM approach for financial performance evaluation of manufacturing industries," Risk Management, Palgrave Macmillan, vol. 22(3), pages 192-218, September.
    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. 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.
    2. Yousaf Muhammad & Dey Sandeep Kumar, 2022. "Best proxy to determine firm performance using financial ratios: A CHAID approach," Review of Economic Perspectives, Sciendo, vol. 22(3), pages 219-239, September.
    3. Prianto Budi Saptono & Gustofan Mahmud & Intan Pratiwi & Dwi Purwanto & Ismail Khozen & Lambang Wiji Imantoro & Maria Eurelia Wayan, 2024. "Book-Tax Differences during the Crisis: Does Corporate Social Responsibility Matter?," Sustainability, MDPI, vol. 16(17), pages 1-38, August.
    4. Jianxiong Chen & Chung-Cheng Yang, 2021. "Competitive Revenue Strategies in the Medical Consumables Industry: Evidence from Human Resources, Research and Development Expenses and Industry Life Cycle," IJERPH, MDPI, vol. 18(6), pages 1-20, March.
    5. 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.
    6. Barra, Cristian & Falcone, Pasquale Marcello, 2024. "Environmental performance of countries. Examining the effect of diverse institutional factors in a metafrontier approach," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    7. Nazli Ersoy, 2023. "Applying an integrated data-driven weighting system – CoCoSo approach for financial performance evaluation of Fortune 500 companies," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(3), pages 92-108, September.
    8. Faizah Alsulami, 2024. "The Operational Risk Disclosure Threshold Effect in the Earnings Management–Sustainability Firm Performance Nexus in Saudi Arabia: A Dynamic Panel Threshold Regression Model," Sustainability, MDPI, vol. 16(10), pages 1-21, May.
    9. Kara, Karahan & Yalçın, Galip Cihan & Simic, Vladimir & Baysal, Zeynep & Pamucar, Dragan, 2024. "The alternative ranking using two-step logarithmic normalization method for benchmarking the supply chain performance of countries," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    10. Nguyen Vinh Khuong & Vu Tran Trong Tai & Nguyen Thi Phuong Thao & Pham Minh Tuan & Tran Tuan Dung & Vo Tuong Khanh, 2024. "Corporate governance and corporate carbon disclosures: The moderating role of earnings management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4596-4611, September.
    11. Ming-Fu Hsu & Chingho Chang & Jhih‐Hong Zeng, 2022. "Automated text mining process for corporate risk analysis and management," Risk Management, Palgrave Macmillan, vol. 24(4), pages 386-419, December.
    12. 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.
    13. Monica-Laura ZLATI (SORICI) & Svetlana MIHAILA & Veronica GROSU, 2022. "Financial Performance Analysis From A Social Welfare Perspective - A Comparative Study Romania-Moldova," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 8(1), pages 63-76, June.
    14. Gabija Simaite & Greta Keliuotyte-Staniuleniene, 2023. "Financial sustainability and derivatives: a theoretical approach," Technium Social Sciences Journal, Technium Science, vol. 39(1), pages 370-376, January.
    15. Zhang, HongWei & Xie, Yuan, 2024. "Assessing natural resources, rebounding trends, digital economic structure and green recovery dynamics in China," Resources Policy, Elsevier, vol. 88(C).
    16. Kara, Karahan & Yalçın, Galip Cihan & Akagün Ergin, Elif & Simic, Vladimir & Pamucar, Dragan, 2024. "A neutrosophic WENSLO-ARLON model for measuring sustainable brand equity performance," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    17. Serkan Karakas & Mehmet Kirmizi & Huseyin Gencer & Kevin Cullinane, 2024. "A resilience assessment model for dry bulk shipping supply chains: the case of the Ukraine grain corridor," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(3), pages 391-413, September.
    18. Manal Hamam & Daniela Spina & Roberta Selvaggi & Gabriella Vindigni & Gioacchino Pappalardo & Mario D'Amico & Gaetano Chinnici, 2023. "Financial sustainability in agri-food supply chains: A system approach," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(2), pages 135-154.
    19. Jianhe Wang & Mengxing Cui & Lei Chang, 2023. "Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries," Economic Change and Restructuring, Springer, vol. 56(3), pages 1629-1650, June.
    20. Hamam, Manal & Spina, Daniela & Selvaggi, Roberta & Vindigni, Gabriella & Pappalardo, Gioacchino & D’Amico, Mario & Chinnici, Gaetano, 2023. "Financial sustainability in agri-food supply chains: A system approach," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(2), October.

    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:eee:soceps:v:92:y:2024:i:c:s0038012124000508. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    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.