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An integrated plithogenic MCDM approach for financial performance evaluation of manufacturing industries

Author

Listed:
  • Mohamed Abdel-Basset

    (Zagazig University)

  • Weiping Ding

    (Nantong University)

  • Rehab Mohamed

    (Zagazig University)

  • Noura Metawa

    (Mansoura University)

Abstract

Financial performance evaluation is very significant for manufacturing industries in a competitive environment to achieve investment goals, especially increasing revenue. Financial performance measures must be identified accurately, because the evaluation process reflects the effectiveness of a company. The purpose of this article is to present a plithogenic multi-criteria decision-making (MCDM) model based on neutrosophic analytic hierarchy process (AHP), Vlse Kriterijumska Optimizacija Kompromisno Resenje (VIKOR) method, and Technique in Order of Preference by Similarity to Ideal Solution (TOPSIS) method. The financial performance in this study is measured by a set of financial ratios. To examine the proposed model, the top 10 steel companies in Egypt are evaluated based on specified financial ratios. According to steel manufacturing experts, the weight of the criteria is determined using AHP method. The company ranking is determined using VIKOR and TOPSIS comparatively. The results show that the obtained ranks of the companies by these methods are almost the same.

Suggested Citation

  • 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.
    • Handle: RePEc:pal:risman:v:22:y:2020:i:3:d:10.1057_s41283-020-00061-4
    DOI: 10.1057/s41283-020-00061-4
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    References listed on IDEAS

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    1. Gudiel Pineda, Pedro Jose & Liou, James J.H. & Hsu, Chao-Che & Chuang, Yen-Ching, 2018. "An integrated MCDM model for improving airline operational and financial performance," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 103-117.
    2. Fu, Yan-Kai, 2019. "An integrated approach to catering supplier selection using AHP-ARAS-MCGP methodology," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 164-169.
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    Cited by:

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    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. 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.
    4. 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.
    5. Omrani, Hashem & Valipour, Mahsa & Emrouznejad, Ali, 2021. "A novel best worst method robust data envelopment analysis: Incorporating decision makers’ preferences in an uncertain environment," Operations Research Perspectives, Elsevier, vol. 8(C).
    6. 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).
    7. 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.
    8. 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.
    9. 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.
    10. 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.

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