Abstract
In today’s world economy, firms focused on the maximization of shareholder value need to ensure that all activities yield positive net present values. Value based financial performance measures have been developed in an attempt to guide management actions towards achieving this objective. In this study, a hybrid approach is proposed for value based financial performance evaluation of automotive parts manufacturer companies of Tehran stock exchange (TSE). For this purpose, in this study based on eight value based measures an integrated fuzzy multi criteria decision making approach is presented for value based financial performance evaluation of companies. In current approach Fuzzy Analytic Hierarchy Process (FAHP) is applied to determine the weights of the criteria. Then the companies are ranked by Fuzzy Complex Proportional Assessment (Fuzzy COPRAS), simultaneously. The results represented the importance of each value based measures in financial evaluation of fourteen Iranian companies and ranking companies by applying the proposed approach.
Highlights
The choice of financial performance measures is one of the most critical challenges facing organizations
The aim of this study is to present an integrated approach to assessment the performance of the companies in the Iran, traded on Tehran stock exchange (TSE), by using value based measures in a fuzzy environment
In today’s world economy, firms should focus on the maximization of shareholder value, for this aim they need to ensure that all activities yield positive net present values
Summary
The choice of financial performance measures is one of the most critical challenges facing organizations. Multi-criteria model based on value based measures is presented, a hybrid approach of MCDM methods in Fuzzy environment for an integrated financial assessment of Iranian companies is provided. Khalili Esbouei and Safaei Ghadikolaei (2013) in their study to ranking ten parts manufacturer companies based on six value based measures and accounting measures, used FAHP to calculate the weights of criteria and used ARAS method to ranking alternatives [16]. Safaei Ghadikolaei et al (2014) in their study about financial performance evaluation of companies with applying fuzzy MCDM methods used FAHP to determine the weights of criteria and fuzzy VIKOR, fuzzy ARAS and fuzzy COPRAS to select best alternative among six Iranian companies [17]. Khalili Esbouei et al (2014) for ranking manufacturing companies used Fuzzy ANP for calculating weight of criteria and Fuzzy VIKOR for evaluation ofalternatives in their study [18]
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