Financial Performance Evaluation of Companies Using Decision Trees Algorithm and Multi-Criteria Decision-Making Techniques with an Emphasis on Investor’s Risk-Taking Behavior

Subject Areas : Financial Accounting

Zinat Ansari ¹ , Rezvan Hejazi ² , Yaghoob Zeraat kish ³ , Zabihallah Khani Masoum Abadi ⁴

1 - Department of accounting, Yasooj Branch, Islamic Azad University, Yasooj, Iran
2 - Scientific Member of Financial & AMP; Economic Faculty, Khatam University, Tehran, Iran
3 - Science and Research Branch, Islamic Azad university , Tehran, Iran
4 - Department of Accounting, Fasa Branch, Islamic Azad University, Fasa, Iran

Received: 2020-04-09 Accepted : 2020-11-01 Published : 2021-07-01

Keywords:

References:

[1]               Bulgur, B. K., Application of TOPSIS Technique for Financial Performance Evaluation of Technology Firms in Istanbul Stock Exchange Market.  Procedia - Social and Behavioral Sciences, 2012, 62 (2012),p. 1033 – 1040.

[2]               Caro, N. P., Guardiola, M. and Ortiz, P., Classification trees as a tool to predict financial difficulties in Latin American companies through their accounting ratios. Contaduría y Administración, 2018, 63 (1), p. 25-26.

[3]               Cheng, C.H., Chen, C.T. and Huang, S.F., Combining fuzzy integral with order weight average (OWA) method for evaluating financial performance in the semiconductor industry. African Journal of Business Management,2012, 6(21),p. 6358-6368.

[4]               Delen, D., Kuzey, C., and Uyar, A., Measuring firm performance using financial ratios: A decision trees approach. Expert Systems with Applications,2013, 40, p. 3970–3983.

[5]               Izadikhah, M., Farzipoor Saen, R., Ranking sustainable suppliers by context-dependent data envelopment analysis. Ann Oper Res, 2020, 293, P.607–637, Doi: 10.1007/s10479-019-03370-4

[6]               Izadikhah, M., Khoshroo, A., Energy management in crop production using a novel fuzzy data envelopment analysis model, RAIRO-Oper. Res., 2018, 52 (2), P. 595-617, Doi: 10.1051/ro/2017082

[7]               Mahdavi, Gh. and Hosseini Azanakhari, M., What is the best criterion for the evaluation of financial performance? Economic Research Journal,2009, 4(31), p.121-146. https://www.sid.ir/fa/journal/ViewPaper.aspx?id=91729 [in Persian].

[8]               MacCrimmon, K.R., and Wehrung, D.A., Taking risks: The management of uncertainty, free press, New York,1986, https://trove.nla.gov.au/version/211445004.

[9]               MacCrimmon, K.R., and Wehrung, D.A., Characteristics of risk-taking executives. Management Science,1990,36(4), p. 422-435.

[10]            Omidi, M., Min, Q., Moradinaftchali, V., and Piri, M., The Efficacy of Predictive Methods in Financial Statement Fraud. Discrete Dynamics in Nature and Society2019, 2019(4), p. 1-12. Article ID 4989140, https://doi.org/10.1155/2019/4989140.

[11]            Pätäri, E., Karell, V., Luukka, P., and Yeomans, J. S., Comparison of the multicriteria decision-making methods for equity portfolio selection: The U.S. evidence. European Journal of Operational.Research, Elsevier, 2018,265(2), p. 655-672.

[12]             Ptak-Chmielewska, A., Predicting Micro-Enterprise Failures Using Data Mining Techniques. J. Risk and Financial Management. See discussions, stats, and author profiles for this publication,2019.   athttps://www.researchgate.net/publication/33104007

[13]            Parsa, B., Sarraf, F. Financial Statement Comparability and the Expected Crash Risk of Stock Prices. Advances in Mathematical Finance and Applications, 2018, 3(3), P. 77-93. Doi: 10.22034/amfa.2018.544951

[14]            Rizvi, A, and Ali, S.B., Risk-Taking Behavior of Investors of Pakistan, 2011 Online athttps://mpra.ub.uni-muenchen.de/64342/MPRA Paper No. 64342, posted 15 May 2015.

[15]            Salehi, A., Baharipour, A., Mohammadi, S. The Impact of Institutional Ownership on the Relationship between Tax and Capital Structure. Advances in Mathematical Finance and Applications, 2016, 1(2), P. 57-67. Doi: 10.22034/amfa.2016.527820

[16]            Shaout, A. and Yousif, M., Performance Evaluation – Methods and Techniques Survey, International Journal of Computer and Information Technology,2014, 3 (5), p. 966-979.

[17]            Staňková, M. and Hampel, D.,  Bankruptcy Prediction of Engineering Companies in the EU Using Classification Methods. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2018, 66(5), p. 1347-1356.

[18]            Tone, K., Toloo, M., Izadikhah, M., A modified slacks-based measure of efficiency in data envelopment analysis, European Journal of Operational Research, 2020, 287 (2), P. 560-571, Doi: 10.1016/j.ejor.2020.04.019.

[19]            Wang, Y.J, and Lee, H.S., Evaluating the financial performance of Taiwan container shipping companies by strength and weakness indices. International Journal of Computer Mathematics,2010,87(1), p. 38-52.

[20]            Yager, R.R., New modes of OWA information fusion, International Journal of Intelligent Systems, 1998, 13 (7), p. 661-681.

[21]            Yalcin, N., Bayrakdaraglu, A., Kahraman, C., Application of fuzzy multi-criteria decision-making methods for financial performance evaluation of Turkish manufacturing industries, Expert Systems with Applications,2012,39(1), p. 350–364.

[22]            Yu. G and Wenjuan. G., Decision tree method in financial analysis of listed logistics companies, in 2010 international conference on intelligent computation technology and automation.

[23]            Zalaghi, H., Godini, M., mansouri, K. The Moderating Role of Firms characteristics on the Relationship between Working Capital Management and Financial Performance. Advances in Mathematical Finance and Applications, 2019, 4(1), P. 71-88. Doi: 10.22034/amfa.2019.581878.1158