Long-Term Performance Evaluation of Deposit Banks With Multi-Criteria Decision Making Tools: The Case of Turkey

Abstract

In this study, it is aimed to measure the long term performance of deposit banks operating in Turkey with an integrated MCDM framework. The effect of stock market indicators is also considered when evaluating the performance of deposit banks. The arithmetic average of the selected ratios between 2014 and 2018 is calculated to obtain long term performance indicators. The weights of the criteria are set with the Best-Worst Method. Five different MCDM tools, namely ARAS, EDAS, MOORA, OCRA and TOPSIS, are used to evaluate the long-term performance of banks. The financial ratio, which has the highest importance, is liquid asset / total assets ratio, according to the expert evaluations. The average return on assets and shareholders' equity/total assets ratio is determined as highly correlated criteria with the final score.

Stock Market Performance Evaluation of Listed Food and Beverage Companies in Istanbul Stock Exchange with MCDM Methods

“…The results help identify any weak areas and aid in the planning of more effective actions to improve performance. -In the study of Özçalıcı et al [46], the long-term financial performance of ten publicly traded deposit banks in Turkey was evaluated using an MCDM framework. The researchers considered various stock market indicators while assessing the banks' performance.…”