Analysis of Common Weighting Method in Data Envelopment Analysis Based on Customer Satisfaction of Companies Active in Tehran Stock Exchange

Subject Areas : Financial engineering

Zahra Bodaghi ¹ , Mahnaz Ahadzadeh Namin ² , Shadi Shahverdiani ³

1 - Department of Financial Managemen, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Mathematics, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran.
3 - Assistant Professor, Department of Financial Managemen, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran

Received: 2018-04-06 Accepted : 2018-05-24 Published : 2019-03-21

Keywords: Tehran Stock Exchange, Ranking, Data envelopment analysis, Common Weighting Method Based on Satisfaction,

Abstract :

The traditional data envelopment analysis model allows the decision maker unit (DMU) to use the most favorable weights to evaluate the efficiency. This type of evaluation with the most flexibility can prevent the full ranking of DMUs and the evaluation results for DMUs are unacceptable. To solve this problem in data envelopment analysis, a common weight approach based on the concept of the degree of satisfaction of a DMU has been introduced. Also, to solve a common weight model, which is a nonlinear model, an algorithm is presented that can be modeled step by step. In this paper, we will evaluate the performance of companies active in Tehran Stock Exchange using a common weight model for 24 companies active in Tehran Stock Exchange. The weighted average performance of Tehran Stock Exchange companies for the years 1394 and 1395. The results show that this method will rank companies without any interference during these two years.