Journal ArticleDOI
A multicriteria approach for evaluating the performance of industrial firms
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TLDR
In this article, the results of a multicriteria analysis, applied to a large sample of Greek pharmaceutical industries, in order to indicate how suitable some common financial ratios are as indices of the firm's overall performance.Abstract:
Multivariate techniques have been widely used for the explanation and prediction of the firm's behaviour. However, in practice, the comparative evaluation and ranking of companies is usually based on the consideration of a single measure of corporate success. But the definition of the most appropriate measure gave rise to a considerable debate. This paper tries to utilise the results of a multicriteria analysis, applied to a large sample of Greek pharmaceutical industries, in order to indicate how suitable some common financial ratios are as indices of the firm's overall performance. The results show that profitability constitutes the most representative measure for the differentiation and ranking of companies. Labour productivity and market share are the best indicators of the business' success, while business' failure is more closely related to ratios indicating long- and short-term solvency. This means that a sound capital structure is a necessary but not a sufficient enough condition to ensure the profitable and effective operation of the firm.read more
Citations
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Determining objective weights in multiple criteria problems: the critic method
TL;DR: A method for the determination of objective weights which is based on the quantification of two fundamental notions of MCDM: the contrast intensity and the conflicting character of the evaluation criteria is proposed.
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Inter-company comparison using modified TOPSIS with objective weights
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A survey of business failures with an emphasis on prediction methods and industrial applications
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Multi‐criteria decision aid in financial decision making: methodologies and literature review
TL;DR: In this paper, the authors provide an in-depth presentation of the contributions of Multi-Criteria Decision Aid (MCDA) in the field of finance, focusing on the methods used and their real-world applications.
References
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Book
Financial Statement Analysis
TL;DR: The demand for financial statement information has been studied extensively in the literature as mentioned in this paper, including the following: 1. The Demand for Financial Statement Information. 2. The Supply of Financial Statement information. 3. Financial Statement Analysis: Introductory Techniques.
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The Analysis and Use of Financial Ratios: A Review Article
TL;DR: The use of financial ratios for all kinds of purposes, such as assessing the ability of a firm to pay its debts, the evaluation of business and managerial success and even the statutory regulation of the firm's performance.
Journal ArticleDOI
Issues in developing a performance criteria system for an organization
TL;DR: In this article, the authors discuss the issues mentioned above with an emphasis on operational performance criteria such as time per unit and percent of defects, and evaluate three different techniques for assigning relative importance of performance criteria.
Journal ArticleDOI
Data envelopment analysis applied to financial statements
TL;DR: In this article, the authors extend the traditional ratio analysis to permit the incorporation of any number of dimensions of performance, using data envelopment analysis, which produces measures of corporate efficiency, together with a wealth of supporting information.