Abstract
Multi Criteria Decision Making (MCDM) is an advanced field of Operation Research; recently MCDM methods are efficient and common tools for performance evaluation in many areas such as finance and economy. The aim of this study is to show one of applications of mathematics in real word. This study with considering value based measures and accounting based measures simultaneously, provided a hybrid approach of MCDM methods in fuzzy environment for financial performance evaluation of automotive and parts manufacturing industry of Tehran stock exchange (TSE).for this purpose Fuzzy analytic hierarchy process (FAHP) is applied to determine the relative important of each criterion, then The companies are ranked according their financial performance by using fuzzy additive ratio assessment (Fuzzy ARAS) method. The finding of this study showed effective of this approach in evaluating financial performance.
Highlights
In today’s world economy, good financial situations provide company’s competitive advantage; On the other hand financial ratios provide useful quantitative financial information about company performance [3]
The aim of this study is to present a fuzzy approach to evaluate the financial performance of the companies in the Iran traded on TSE by using both accounting measures and value based measures together in a fuzzy environment
MCDM is an advanced field of OR that very appropriate to performance evaluation problems
Summary
In today’s world economy, good financial situations provide company’s competitive advantage; On the other hand financial ratios provide useful quantitative financial information about company performance [3]. In this context, this study puts forth a fuzzy hybrid approach for the financial performance evaluation of the listed companies in automotive and parts manufacturing that traded on TSE in 2002–2011. At first FAHP will be used to determine the weight of main criteria and sub criteria, fuzzy ARAS will be applied for ranking the automotive group’s companies traded on TSE in 2002–2011
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