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Financial Performance Evaluation of Turkish Construction Companies in Istanbul Stock Exchange (BIST)

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  • Emrah Onder
  • A. Taylan Altintas

Abstract

Financial performance evaluation of construction companies is a kind of multi-criteria decision making (MCDM) problem. The decision makers need a wide range of performance indicators in order to ensure that appropriate decisions can be made. The aim of this study is to evaluate the financial performance of Turkish construction companies whose shares are publicly traded in Istanbul Stock Exchange (Borsa Istanbul-BIST) during 2012-2015 period using multi criteria decision techniques. For this purpose, Grey Relations Analysis and Analytical Network Process were used in examining the data related to these companies. This model is applied to a case study for the financial performance evaluation of 7 construction companies (Anel, EDIP, Enka, Kuyumcukent, ORGE, SAN-EL, Yeºil Yapi) in Turkey. Financial performance indicators namely Asset Growth Rate, Operating Costs/Net Sales, Return on Asset, Net Profit Margin, Return on Equity, Current Ratio, Long Term Assets/Total Assets and Quick Ratio are used for ranking the firms. The findings of this paper would demonstrate the financial performance of the Turkish construction companies and would help construction companies’ managers and investors to evaluate the performance of each company and compare it with their competitors’.

Suggested Citation

  • Emrah Onder & A. Taylan Altintas, 2017. "Financial Performance Evaluation of Turkish Construction Companies in Istanbul Stock Exchange (BIST)," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(3), pages 108-113, July.
    • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:3:p:108-113
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    References listed on IDEAS

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    1. Lewellen, Jonathan, 2004. "Predicting returns with financial ratios," Journal of Financial Economics, Elsevier, vol. 74(2), pages 209-235, November.
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    Cited by:

    1. Ajla Muratovic-Dedic & Nino Serdarevic, 2017. "Financial Reporting Quality and Debt Contracting in Emerging Economy," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 71-82, October.
    2. Gehan A. Mousa & Elsayed A. H. Elamir & Khaled Hussainey, 2022. "Using machine learning methods to predict financial performance: Does disclosure tone matter?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(1), pages 93-112, March.

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