Evaluating financial performance with multi-criteria decision-making methods: a case study in the İstanbul Stock Exchange communication sector

This thesis focuses on the evaluation of financial performance using multi-criteria decision-making methods, and this assessment has been conducted with an application on the Communication Sector of Borsa Istanbul. The primary aim of the study is to determine the financial performance of companies operating in the communication sector and to provide decision-makers with a framework for greater coherence through the utilization of multi-criteria evaluation methods. The thesis initiates by identifying the main factors influencing the financial performance of companies in the communication sector through a literature review. Subsequently, within a defined framework of these factors, the methods of multi-criteria evaluation of financial performance, such as ENTROPY, EDAS, and ARAS, are examined. The study was conducted using a dataset comprising financial statements and financial indicators of communication sector companies traded on Borsa Istanbul. Analytic hierarchy process and grey relational analysis methods were employed to weigh various dimensions of financial performance and influencing factors. The results demonstrated that the multi-criteria decision-making methods used to rank the financial performance of companies in the communication sector according to predetermined criteria were effective and reliable. By emphasizing the applicability of multi-criteria methods for financial performance evaluation, this study will assist decision-makers in the business world in making more informed and knowledgeable decisions.