PERFORMANCE EVALUATION OF TURKISH BANKS USING ANALYTICAL HIERARCHY PROCESS AND TOPSIS METHODS


ÖNDER E., TAŞ N., HEPŞEN A.

Journal of International Scientific Publications: Economy & Business, vol.7, no.1, pp.470-503, 2013 (Peer-Reviewed Journal)

Abstract

Financial performance evaluation of banks is a kind of multi-criteria decision making (MCDM) problem
which has developed rapidly. It is very important for a firm to monitor a wide range of performance
indicators in order to ensure that appropriate and timely decisions and plans can be made. Suitable
performance measures can ensure that managers adopt a long-term perspective and allocate the
company’s resources to the most effective activities. The aim of this study is to evaluate the financial
performance model of Turkish Banks during 2002-2011 periods. Both Analytical Hierarchy Process
(AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) methodologies are
used for the outranking of banks. In this study, subjective and objective opinions of financial actors turn
into quantitative form with AHP.