Recent bankruptcy of big companies all over the world and fluctuations in Iran's stock
market require that some methods be developed for the evaluation of companies' financial potential. Different models are used for the prediction of bankruptcy and the evaluation of
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Recent bankruptcy of big companies all over the world and fluctuations in Iran's stock
market require that some methods be developed for the evaluation of companies' financial potential. Different models are used for the prediction of bankruptcy and the evaluation of
organizational financial situation. Environmental changes and increasing competition among agencies led to companies' and organizations' limited access to expected profit. Thus, financial decision making is, nowadays, more and more important, forcing managers to apply modern control methods through sophisticated techniques. The present study aims to evaluate the performance of companies' situation. For this purpose, we use the two models of data
envelopment analysis and Zemijsky and compare results derived from them. The research data
were gathered from 10 accepted in stock market. Results from data envelopment analysis model indicated that only one company was in a proper financial situation while results from Zemijsky's model showed that there were two companies in good financial condition. We also managed to develop strategies for the improvement of financial situation in other companies
using data envelopment analysis model.
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