Analysis of Financial Performance of Cement Industry Manufacturing Companies in Tehran Stock Exchange Using the FAHP Technique and the TOPSIS Method
Article Sidebar
Main Article Content
Abstract
The aim of this study was to provide a fuzzy model for evaluating the performance of cement industry manufacturing companies listed in Tehran Stock Exchange in 2013, 2014 and 2015 using financial ratios and considering the preferences of different decision makers.
Methodology
This study was based on FAHP and TOPSIS, in which the FAHP was used to determine the weight of different criteria of the decision makers. Finally, the cement industry companies were ranked using the TOPSIS approach. In this study, different financial ratios such as liquidity ratios, leverage ratios, activity ratios, profitability ratios, and growth ratios were used for evaluation.
Results & Findings
Eleven findings and nineteen results were presented that three Soufian Cement Company, Ghadir Capital and Industry Development Cement Company, and Hegmatan Cement Company from Three East Azarbaijan, Tehran, and Hamedan provinces and from three different geographic regions of Iran have had the most similarity with the ideal solution in the ranking of options (alternatives) by the TOPSIS method. Also, in the light of core values and by maintaining their market share and competent corporate governance, they have gained the highest output of the cement industry by obtaining the first rank respectively in 2013, 2014, and 2015, which, in turn, can be a good representative of the country's cement industry. By modeling the top companies and with the help of science along with analyzes in other sectors of the cement industry, the firms with weaker performance can strengthen their performance. This can become a strong strength for the Iranian cement industry.
Downloads
Article Details
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
BACIDORE, J. M.; BOQUIST, J. A.; MILBOURN, T. T.; THAKOR, A. V. (1997) The search for the best financial performance measure. Financial Analysts Journal, v. 53, n. 3, p. 11-20.
CHANG, C. H.; LIN, J. J.; LIN, J. H.; CHIANG, M. C. (2010) Domestic open-end equity mutual fund performance evaluation using extended Topsis method with different distance approaches. expert systems with applications, n. 37, p. 4642-4649.
GHALIZADEH; HASSAN, M. (2004) Designing the Ranking Model of Companies Accepted in Tehran Stock Exchange Using Data Envelopment Analysis (Case of Food and Beverage Industry), Ph.D., Financial Management, Faculty of Management, University of Tehran.
HO, M. Y. ; CHEUNG, F. M.; CHEUNG, S. F. (2009) The role of meaning in life and optimism in promoting well-being. The Chinese University of Hong Kong: Shatin, University of Macau, China.
HAYNES, K.; PATRIK, S.; BOWEN, W.; CUMMINGS-SAXTON, J. (1993), Environmental Decision Models: U.S. Experience and a New Approach to Pollution Management, Environmental International, n. 19, p. 261-75.
IRAQI, M. K. (2008) Capital Multi-Criterion Budgeting, Economic Research, n. 27, p. 1-211-183.
ÍRFAN, E.; NILSEN, K. (2007) Fuzzy TOPSIS method for academic member selection in engineering faculty Innovations in E-learning, Instruction Technology, Assessment, and Engineering Education (p. 151-156): Springer.
KASHAN, G.; ABDOLJABAR, S.; ROSTAMI, A.; ASGHAR, A. (2004) Designing a Comprehensive Performance Assessment and Companies Rating Model, Moderator Quarterly, Humanities, n. 36.
KUO, Y.; YANG, T.; HUANG, G. (2008) The use of grey relational analysis in solving multiple attribute decision making problems. computers & industrial engineering, n. 55, p. 80-93.
MAHMOUD, S.; HOSSEIN, S.; HABIBEH, F.; FARSHID, H. (2006) Presentation of a Model for the Ranking of Informatics Companies, Commercial Journal, v. 10, n. 40.
MAHMOOD, Y.; SHAHABDIN, S.; JAFAR, L. S. (2010) The relationship between economic value added and profitability ratios with the market value added of listed companies in Tehran Stock Exchange. Accounting and Auditing Reviews, v. 17, n. 59, p. 113-128.
MASOUMEH, S.; ZERR, F. (2009) Ratio of Tehran Stock Exchange cement companies using the Hypothesis Analytical Process-Topsis Analysis Process, Management Perspective, n. 32, p. 109-129.
MEHREGAN, M. A. (2014) Advanced Operational Research, Tehran: Academic Books Publication, Fifth Edition.
REZAIE, K.; RAMANI, S. S.; NAZARI-SHIRKOUHI, S.; ALI, B. (2014) Evaluation performance of iranian cement firms using an integrated fuzzy AHP-VIKOR method, Applied Mathematical Modelling, v. 38, n. 21-22.
SASAN, M.; KAVEH, M.; GHOLAMREZA, K. (2004) Using Financial and Non-Financial Information to Separate Successful Unsuccessful Companies, Quarterly Journal of Accounting and Auditing, v. 11, n. 38.
WANG, Y. J. (2008) Applying FMCDM to Evaluate Financial Performance of Domestic Airlines in Taiwan, Expert Systems with Applications, v. 34, p. 1837–1845.
YALCIN, N.; BAYRAKDAROGLU, A.; KAHRAMAN, C. (2012) Application of fuzzy multi-criteria decision making methods for financial performance evaluation of Turkish manufacturing industries, Expert Syst. Appl., v. 39, n. 1, p. 350–364
ZOHREH, S.; ABBAS, B. (2005) Research Methods in Behavioral Sciences, Tehran, Publishing.