Building a portfolio with efficiency analysis

The concepts of efficiency and effectiveness are two important indicators of performance. These two concepts, which are used interchangeably in daily life, are actually different in terms of the meaning they carry. The concept of efficiency refers to the proportional relationship between output and inputs. The effectiveness is a performance dimension that determines the degree to which these goals and objectives are attained as a result of the activities that perform their strategic goals and defined objectives. Many analysis methods have been developed to measure effectiveness. Data envelopment analysis has been used in this study. In the study ; Financial performance assessment has been performed by using Data Envelopment Analysis (DEA) for service sector companies listed on Borsa Istanbul (BIST)-Services Index. For this purpose, it has been understood that the companies which are effective in terms of financial performance can be used as portfolio formation and investment after determining the inputs and outputs for the decision units by examining the financial statements and annual reports in order to reveal the financial performances of the mentioned companies. In addition, according to the findings obtained from the analysis, it is revealed which financial performance items should be improved by companies that are not effective. Thus, the efficiency of these companies has been examined and measured.