Financial performance evaluation through multi-criteria decision-making methods: an application in Borsa İstanbul

This study was conducted to comparatively evaluate the MCDM methods used in financial performance analysis in terms of paradigm and criterion selection. In the study, data from 2021-2023 for companies operating in the Food, Beverage and Tobacco sector on the Borsa İstanbul were used as a basis, and three different criteria sets consisting of accounting and value-based indicators were used. The criteria were weighted using the Entropy method, and financial performance levels were determined using the ARAS, WASPAS, VIKOR, TOPSIS, and EDAS methods. The findings were analysed using statistical methods and evaluated by comparing them in different dimensions. The study concluded that preference paradigms are insufficient to explain the similarities or differences between MCDM methods; MCDM methods exhibit varying degrees of sensitivity to changes in the set of criteria; companies' accounting and value-based financial performance levels can differ; and value-based performance indicators can be used as a powerful tool to distinguish between companies' financial performance levels.