Evaluating Financial Performance of Companies in the Borsa Istanbul Sustainability Index Using the CRITIC-MABAC Method

Galip Cihan Yalçın; Karahan Kara; Hamide Özyürek

doi:10.31181/sor21202530

Authors

Galip Cihan Yalçın Department of Business, Faculty of Economics and Administrative Sciences, OSTIM Technical University, 06374 Ankara, Türkiye Author https://orcid.org/0000-0001-9348-0709
Karahan Kara Department of Business, Faculty of Economics and Administrative Sciences, İzmir Democracy University, 35140 İzmir, Türkiye Author https://orcid.org/0000-0002-1359-0244
Hamide Özyürek Department of Business, Faculty of Economics and Administrative Sciences, OSTIM Technical University, 06374 Ankara, Türkiye Author https://orcid.org/0000-0002-2574-954X

DOI:

https://doi.org/10.31181/sor21202530

Keywords:

Financial Performance, Borsa Istanbul Sustainability Index, Criteria Importance Through Intercriteria Method, CRITIC, Multi-Attributive Border Approximation Area Comparison Method, MABAC

Abstract

Companies need to monitor their financial performance and update their strategies to establish sustainable financial structures. Therefore, they analyze their financial performance using various analytical approaches. This study examines financial performance analysis using the MCDM (Multi-Criteria Decision-Making) approach to observe companies' financial performance and determine their performance levels relative to competitors within their respective indices. In this context, the CRITIC (Criteria Importance Through Intercriteria) - MABAC (Multi-Attributive Border Approximation Area Comparison) method is applied to financial performance analysis. The objective criteria weighting method, CRITIC, is used to prioritize financial performance criteria, while the MABAC method determines and ranks companies' financial performance. The study applies the CRITIC-MABAC method to assess the 2023 financial performance of the top ten companies listed in the Borsa Istanbul (BIST) Sustainability Index. The decision model includes twelve financial performance criteria. According to the findings, the most significant criterion is identified as the Cost of Goods Sold. Among the companies analyzed, Turkish Airlines Inc. (THYAO) is determined to have the highest financial performance. The robustness and consistency of the results are supported by sensitivity and comparative analyses. The study concludes with key insights and recommendations for future research.

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