Financial Performance Evaluation by Multi-Criteria Decision-Making Techniques

PurposeIn this study, financial performance evaluation model is developed for banks aims to measure and compare the performances of banks based on their financial ratios.Design/methodology/approachRegression-AHP (Analytic Hierarchy Process)-VIKOR (Vise Kriterijumska Optimizacija I Kompromisno Resenje) integrated methodology is used. First, a literature review is done to find various bank performance measurement models with their financial metrics being compared. Then, pair-wise comparison matrices are used to find the relative weights of criteria (financial ratios) and finally VIKOR method is used to rank the banks.FindingsIt is believed that an AHP-based VIKOR framework helps to take up the explicit account of multi-criteria decision making (MCDM) methodologies in decision making and for selecting the best bank in the Turkish economy.Research limitations/implicationsIn this paper, only selected financial ratios are used and analyzed for the multi-criteria decision-making (MCDM) method.Originality/valueThe systematic solution procedure of performance evaluating the banks helps the decision-makers to carry out performance evaluation studies for improving economic and managerial performance. This comparative study and analysis of bank performance using the regression-AHP-VIKOR combined model is presented for the first time. The authors have not become aware of any such studies in their literature review. This paper is an original framework of the application of the regression-AHP-VIKOR on the various financial performance metrics.

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Robust Benchmarking of Indian Mutual Funds-A Partial Frontier Approach

International Journal of Financial Management ◽

10.21863/ijfm/2015.5.2.007 ◽

2015 ◽

Vol 5 (2) ◽

Author(s):

Ram Pratap Sinha

Keyword(s):

Decision Making ◽

Performance Evaluation ◽

Mutual Funds ◽

Mutual Fund ◽

Multi Criteria Decision Making ◽

Risk Framework ◽

Programming Techniques ◽

Risk Free Rate ◽

Risk Ratios ◽

Free Rate

Performance analysis of mutual funds is usually made on the basis of return-risk framework. Traditionally, excess return (over risk-free rate) to risk ratios were used for the purpose mutual fund evaluation. Subsequently, the application of non-parametric mathematical programming techniques in the context of performance evaluation facilitated multi-criteria decision making. However,the estimates of performance on the basis of conventional programming techniques like DEA and FDH are affected by the presence of outliers in the sample observations. The present, accordingly uses more robust benchmarking techniques for evaluating the performance od sectoral mutual fund schemes based on observations for the second half of 2010. The USP of the present study is that it uses two partial frontier techniques (Order-m and Order- a) which are less susceptible to the problem of extreme data.

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Intuitionistic Fuzzy Hierarchical Multi-Criteria Decision Making for Evaluating Performances of Low-Carbon Tourism Scenic Spots

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph17176259 ◽

2020 ◽

Vol 17 (17) ◽

pp. 6259

Author(s):

Xuan Yang ◽

Zhou-Jing Wang

Keyword(s):

Decision Making ◽

Performance Evaluation ◽

Pairwise Comparison ◽

Evaluation Index System ◽

Multi Criteria Decision Making ◽

Low Carbon ◽

Decision Matrix ◽

Intuitionistic Fuzzy ◽

Linguistic Term ◽

Performance Evaluation Index

Low-carbon tourism is an effective solution to cope with the goal conflict between developing tourist economy and responding to carbon emission reduction and ecological environment protection. Tourism scenic spots are important carriers of tourist activities and play a crucial role in low-carbon tourism. There are multiple factors affecting the low-carbon performance of a tourism scenic spot, and thus the performance evaluation and ranking of low-carbon tourism scenic spots can be framed as a hierarchical multi-criteria decision making (MCDM) problem. This paper develops a novel method to tackle hierarchical MCDM problems, in which the importance preferences of criteria over the decision goal and sub-criteria with respect to the upper-level criterion are provided by linguistic-term-based pairwise comparisons and the assessments of alternatives over each of sub-criteria at the lowest level are furnished by positive interval values. The linguistic-term-based pairwise comparison matrices are converted into intuitionistic fuzzy preference relations and an approach is developed to obtain the global importance weights of the lowest level sub-criteria. A multiplicatively normalized intuitionistic fuzzy decision matrix is established from the interval-value-based assessments of alternatives and a method is proposed to determine the intuitionistic fuzzy value based comprehensive scores of alternatives. A case study is offered to illustrate how to build a performance evaluation index system of low-carbon tourism scenic spots located at Zhejiang Province of China and show the use of the proposed intuitionistic fuzzy hierarchical MCDM method.

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