Combining Fuzzy AHP and Fuzzy TOPSIS with Financial Ratios to Design a Novel Performance Evaluation Model

Shaverdi, Meysam; Ramezani, Iman; Tahmasebi, Rahim; Rostamy, Ali Asghar Anvary

doi:10.1007/s40815-016-0142-8

Cited by 73 publications

(45 citation statements)

References 31 publications

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“…Ban & O. Ban, 2012;Chang, 1996;Chan & Yeh, 2001;Deng, 1999;Hwang & Yoon, 1981;Saaty, 1980Saaty, , 1992Saaty, , 2008Yalcin et al, 2012;Zeleny, 1982;Zolfani & Šaparauskas, 2013;Ignatius et al, 2016;Shaverdi et al, 2016;Erdogan et al, 2017;Samanlioglu et al, 2018). The choice of a technique used in a multicriteria decision making problem is rather arbitrary, because each technique has its own advantages and disadvantages and it does not exist a method to find the most appropriate (see Zavadskas & Turkis, 2011).…”

Section: Fahp and Topsis Methodsmentioning

confidence: 99%

Performance Evaluation Model of Romanian Manufacturing Listed Companies by Fuzzy Ahp and Topsis

Ban

Bogdan

et al. 2020

Technological and Economic Development of Economy

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We are interested in the hierarchy of the main Romanian companies in the manufacturing industry by considering eight financial and seven non-financial indicators. Thirty three listed companies, that are non-financial institutions, were selected for the study and in order to control the reliability of the data we used the Bucharest Stock Exchange database, official data published by the Romanian Ministry of Public Finance, and the annual reports released by the companies on their websites, collecting information for the years 2011–2015. Because the human thinking is subjective and ambiguous we prefer linguistic variables, converted afterwards in triangular fuzzy numbers, to represent the importance of indicators. Our method involves the calculation of the weights of individual or categories of indicators based on Fuzzy Analytic Hierarchy Process. Then, the level of performance for each company, separately for financial, non-financial and all indicators is obtained by TOPSIS method. We deduce an objective hierarchy of the companies on a rigorous basis, which is however dependent from the choice of indicators and the conversion scale of linguistic variables into triangular fuzzy numbers. Also, following the obtained results we concluded that the overall performance of companies for the analyzed period is significantly influenced by non-financial indicators.

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Section: Fahp and Topsis Methodsmentioning

confidence: 99%

Performance Evaluation Model of Romanian Manufacturing Listed Companies by Fuzzy Ahp and Topsis

Ban

Bogdan

et al. 2020

Technological and Economic Development of Economy

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“…Many researchers have used financial ratios to predict business entities' performance in the future [37][38][39][40] because ratios are precise and widely available. Similarly, Presley et al [41] claimed that sustainability performance could be measured by financial factors that achieve banks' financial goals.…”

Section: Linkage Between Sustainability and Financial Performance In mentioning

confidence: 99%

Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach

Lin

Chang

2019

Sustainability

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The Taiwanese government has encouraged bank privatization and the establishment of financial holding companies to improve banking sustainability and consolidate banks, insurance companies, and securities firms. It is important for bank decision makers to set policies that lead to sustainable development. However, the literature remains unclear about the types of banks that achieve greater business sustainability. This paper aims to (1) identify the criteria that affect banks’ business sustainability and (2) determine the most sustainable types of banks. This study uses a hybrid multiple-criteria decision-making approach on eighteen financial criteria for twenty-five Taiwanese listed banks with data from 2012 to 2016. The results show that non-performing loan ratio is the most critical factor. In addition, financial holding companies outperformed non-financial holding companies. Financial holding companies with insurance companies as their largest subsidiaries performed best. Private banks exceeded state-owned banks in sustainability. The results lead to two implications. First, banks should value risk over profitability and diversify financial products. Second, the government should continue to privatize banks. These findings suggest that bank managers implement an enterprise resource planning (ERP) system with a master plan, framework, and guidelines to help them track bank performance indicators to ensure sustainability.

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“…The AHP was first proposed by Thomas Saaty. It is commonly used to deal with multi criteria decison making problems since its apprearance.There are mainly four steps i.e., construction of the evaluationlevel, development of the assessment matrixin pairs, computing thecriteria weights as well as verification of the consistency of the comparison matrixin this method (Palcic et al, 2009;Shaverdi et al, 2016).…”

Section: Determingthe Weightsof Criteria Using Ahp Methodsmentioning

confidence: 99%

Product design scheme evaluation method based on AHP and dual hesitant fuzzy sets

2017

Revista de la Facultad de Ingeniería

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In order toinvestigate the evaluation problem of product design schemes,tihs paper proposes a fuzzy MADM method based on the Analytic hierarchy process and dual hesitant fuzzy sets. Firstly, we classify all the people related to the priduct underconsidered into five types, i.e., product designer (including product modeling designer, the principleand structure design engineer), manufacturing, sales, use groups as well as the executivesdepartments based on the data collected from the internet with the use of digital technology. Then, a comprehensiveevaluation indexsystem including eight criteria is formulatedbased on these types of people, so that each group can make the accurate (or more accurate) evaluation for productdesign schemes within their cognitive scope.The classcial AHP method is ultilized so as todetermine the weights of the criteria. Next,two aggregation operators for dual hesitant fuzzy sets are adopted to combine the dual hesitant fuzzy assessments in the MADM method proposed in this paper. Finally, we apply the proposed method to solve anumerical example to demonstrate its validity and effectiveness.

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Combining Fuzzy AHP and Fuzzy TOPSIS with Financial Ratios to Design a Novel Performance Evaluation Model

Cited by 73 publications

References 31 publications

Performance Evaluation Model of Romanian Manufacturing Listed Companies by Fuzzy Ahp and Topsis

Performance Evaluation Model of Romanian Manufacturing Listed Companies by Fuzzy Ahp and Topsis

Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach

Product design scheme evaluation method based on AHP and dual hesitant fuzzy sets

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