Yönetim ve Ekonomi (Dec 2020)
Financial Performance Analysis by Fuzzy VIKOR Method: A Case Study in the Turkish Chemical Sector
Abstract
Having good financial performance of the industries of developing countries such as Turkey; a critical feature for the future of the national economy, and the profitability and sustainability of firms. The chemical sector is vital for economies, given the impact of high added value, quality workforce and export potential. Measuring financial performance involving multiple criteria, i.e. financial ratios, is an important and sensitive process. Multi-Criteria Decision Making (MCDM) methods can evaluate alternatives by considering multiple criteria and facilitate analysis. In this study, the financial performance of the Turkish chemical sector was analyzed by years and sub-sectors with the fuzzy VIKOR method based on expert opinions. As the evaluation criterion, 10 financial ratios commonly used in the financial performance analysis in the literature were selected. As the application data, the annual sector balance sheets were used that issued by CBRT (Central Bank of the Republic of Turkey). During the period of the study, the chemical sector was divided into four sub-sectors by the CBRT. The study covers the period 2010-2016, as current data for the four sub-sectors is up to 2016. In the study, firstly, the financial performances of the chemical sub-sectors for seven years between 2010 and 2016 were calculated separately, and then it was investigated whether there is a difference between the sub-sectors in performance rankings. In general, the sub-sectors have shown their best financial success in different years. Annual financial performance in all the chemical sub-sectors followed a fluctuating course rather than a continuous increase or decrease. According to Spearman rank correlation coefficients; It has been observed that the performance rankings of C-203 (Production of Paint and Similar Substances) and C-205 (Production of Other Chemical Products) sub-sectors by years are related. While the annual performance rankings of these two sub-sectors are similar, the annual performance rankings in the other sub-sectors differed. These results show that the financial success of sub-sectors in a sector can act independently from each other. The reasons for this may be the subject of another study in the future.
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