12th International Symposium: Economy & Business, Bulgaria, vol.7, no.1, pp.470-503
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.
Keywords: Financial Performance Evaluation, Analytical Hierarchy Process (AHP), TOPSIS Method, Turkish Banking Sector