Evaluating the Performance of Companies Listed in Tehran Stock Exchange based on Financial Ratios Using DEA (The Case of Chemical & Medical Company)
الموضوعات : International Journal of Finance, Accounting and Economics Studies
Younos Vakil Alroaia
1
(Associate Prof. and Chairman, Entrepreneurship and Commercialization Research Center, Department of Management, Semnan Branch, Islamic Azad University, Semnan, Iran)
الکلمات المفتاحية: Performance evaluation, Financial Ratios, Tehran Stock Exchange, DEA Technique, Chemical &, Medical Companies,
ملخص المقالة :
Today determining the portfolio of investments is one of the most important issues in investment management. Therefore, the most important problems of the proposed models is the lack of consideration of multiple indicators and criteria in evaluating the performance of the stock portfolio. Many Chemical & Medical companies embark on process improvement initiatives, but lack evidence that these programs result in high efficiency. Therefore, the purpose of this study is to examine the performance of chemical companies listed in Tehran Stock. The study uses Data Envelopment Analysis (DEA) to understand Chemical co. efficiency and effectiveness. To measure the performance of companies, the total assets, equity, and ADS was used as inputs and outputs consist of NPM, ROE, and ROA. In the course of this research, formulation of hypotheses and systematic removal of 32 companies by stock exchange, the 5-year period 2012- 2017 were selected with reference to their financial statements, the information necessary to measure the variables, extraction and statistical tests on they were carried out. The results of the DEA indicate the existence of different degrees of financial ratios in Medical and Chemical Companies. When by Anderson Peterson model, companies can be ranked and categorized into three groups: strangely super-efficient, supper-efficient and efficient. Data envelopment analysis technique turned different ratios and financial data into a unit and comparable measure called "efficiency". Therefore, it can suggested that data envelopment analysis technique can be a reasonable complement to traditional analysis of financial statements using financial ratios.
