Ranking and evaluation of financial efficiency of pharmaceutical companies accepted in Tehran Stock Exchange with the approach of data envelopment analysis and multi-criteria decision making
محورهای موضوعی : Multi-Criteria Decision Analysis and its Application in Financial Managementsaba salimi 1 , Mohsen Shahriari 2
1 - Department of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan 15848-11888, Iran
2 - Department of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan 15848-11888, Iran
کلید واژه: Data envelopment analysis, Efficiency, Multi-Criteria Decision Making,
چکیده مقاله :
The complexity of the competitive business environment has highlighted the need to be aware of the organization's strengths and weaknesses and to continuously improve processes. Therefore, managers are looking for a solution for performance measurement of their organization to be able to promote and improve their organization. Evaluating the performance of listed companies in the stock exchange organization is important because in addition to the managers of the organizations, stock traders can also evaluate the companies and make the necessary decisions about holding, selling or buying the shares of these companies in a timely manner. One of the organization's performance measurement solutions is to use financial ratios. Given that a separate study of financial ratios does not provide a correct view of the efficiency of the organization, so the aggregation of the effect of financial ratios seems to be effective. DEA and MCDM are suitable because they enable the achievement of performance index by considering several factors simultaneously, so the performance obtained from this method is reliable. the main purpose of this study is to ranking pharmaceutical companies in the Tehran Stock Exchange between the years 2018 and 2020 using DEA approach and MCDM to provide a single ranking through the Copeland method.
[1] Santos, B. M. D., Godoy, L. P., and Campos, L. M. S., Performance evaluation of green suppliers using entropy-TOPSIS-F, Journal of Cleaner Production, 2019, 207, P. 498–509.Doi: 10.1016/j.jclepro.2018.09.235
[2] Rakhshan, S. A., Efficiency ranking of decision making units in data envelopment analysis by using TOPSIS-DEA method, Journal of the Operational Research Society, 2017, 68, P.906–918.Doi:10.1057/s41274-017-0237-0
[3] Rahimi, H., Minouei, M., Fathi, M., Financial Distress of Companies Listed on the Tehran Stock Exchange using the Dynamic Worst Practice Frontier-based DEA Model, Advances in Mathematical Finance and Applications, 2022,7,P.507-525. Doi:10.22034/amfa.2021.1931684.1597
[4] Nguyen, T. N. L., Nguyen, V. C., The determinants of profitability in listed enterprises: A stud from Vietnamese stock exchange, The Journal of Asian Finance, Economics and Business,2020, 9, P.47-58. Doi:10.13106/jafeb.2020.vol7.no1.47.
[5] Sarhangi, K., Mohaghegh Niya, M., Amiri, M., The effect of effective governance and quality of regulations on financial development in the current economic conditions of Iran, Advances in Mathematical Finance and Applications, 2021, 6, P. 831-850. Doi: 10.22034/amfa.2021.1927615.1582
[6] Chen, Y. J., Liou, W. C., Chen, Y. M., Wu, J. H., Fraud detection for financial statements of business groups, International Journal of Accounting Information Systems, 2019, 32, P.1-23. Doi:1016/j.accinf.2018.11.004
[7] Bader, M.A., Managing intellectual property in the financial services industry sector, Journal of Technovation, 2008. 28, P.196-207,Doi:10.1016/j.technovation.2007.05.007
[8] Charnes, A., Cooper, W. W., Li, S., Using data envelopment analysis to evaluate efficiency in the economic performance of Chinese cities,Journal of Socio-Economic Planning Sciences, 23, P.325-344. Doi: 10.1016/0038-0121(89)90001-3
[9] Charnes, A., Cooper, W. W., Wei, Q. L., uang, Z. M., Cone ratio data envelopment analysis and multi-objective programming. International journal of systems science, 1989, 20, P.1099-1118. Doi: 10.1080/00207728908910197
[10] Moslemi, A., Pourzamani, Z., Jahanshad, A., Ranking of Banks’ Risk Reporting Using Data Envelopment Analysis, Advances in Mathematical Finance and Applications, 2021, 6, P.695-715. Doi: 10.22034/amfa.2021.1899631.1436
[11] Mehregan, N. Garavand, S. Sadeqi, H. Malekshahi, M., The Evaluation of Energy Efficiency in Petrochemical Industry, Journal of Economic policy making, 2015, 5, P.148-157. Doi: 20.1001.1.26453967.1392.5.10.2.3
[12] Namazi, M., Shokrollahi, A., Investigation the Interaction between Debt Policy and Institutional Ownership among Pharmaceutical and Non-Pharmaceutical Companies Listed on the Tehran Stock Exchange via Simultaneous Equations, Journal of Health Accounting, 2014. 3, P. 80-103. Doi:10.30476/JHA.2014.17007
[13] Sheikh Abomasoudi, A., Mirghaderi, S. A. ,The Ranking of Financial Efficiency of Companies Accepted in Stock Exchange of Tehran between 2013 to 2016 through Financial Ratio Approach and Using DEA, International Journal of Data Envelopment Analysis, 2017, 5, P.337-1352. Doi: 10.1016/j.seps.2014.12.001
[14] Wang, C. N., Dang, T. T., Tibo, H., Duong, D. H., Assessing renewable energy production capabilities using DEA window and fuzzy TOPSIS model, Symmetry, 2021, 13 , P.334. Doi:10.3390/sym13020334
[15] Ersoy, Y., Performance evaluation in distance education by using data envelopment analysis (DEA) and TOPSIS methods, Arabian Journal for Science and Engineering, 2021, 46, P.1803-1817. Doi: 10.1007/s13369-020-05087-0
[16] Madhuri, M. V., Shankar, N. R., Evaluation and Selection of Supplier in A Supply Chain Management using DEA-TOPSIS Methods Under Intuitionistic Fuzzy Environment, Journal of Intelligent & Fuzzy Systems, 2020, 26, P.2391-2401. Doi:org/10.1023/A:1008703501682
[17] Khajavi, Sh., Qayouri, A., Qaffari,M., Data Envelopment Analysis Technique as Complementary for Traditional Analysis of Financial Ratios, Accounting and Auditing Reviews, 2010, 60, P.153-167. Doi:10.1016/j.A.2015.08.008
[18] Lotfi, F.H., Fallahnejad, R., and Navidi, N., Ranking efficient units in DEA by using TOPSIS method, Applied Mathematical Sciences, 2011 ,17,P.805-815.Doi:10.1058/41275-014-0267-0
[19] Widiarto, I., Emrouznejad, A., Social and financial efficiency of Islamic microfinance institutions: A Data Envelopment Analysis application, Socio-Economic Planning Sciences, 50, P.1-17,
Doi: 10.1057/palgrave.jors.2602527
[20] Tahari, F., Babaei, M., Darioush, H., Presenting a Composite Model of Data Envelopment Analysis and Ideal Planning to Improve Performance Evaluation of Decision Units, Journal of Industrial Management Studies, 2011, 21, P.37-46. Doi: 10.22068/joims.29.2.117
[21] Osadchy, E. A., Akhmetshin, E. M., Amirova, E. F., Bochkareva, T. N., Gazizyanova, Y., Yumashev, A. V., Financial statements of a company as an information base for decision-making in a transforming economy, European Research Studies Journal, 2018, 2, P.339-350. Doi: 10.22056/jir.2018.108794.2208
[22] Cooper, W.W., Seiford, L. M., Zhu, J., Data envelopment analysis: History, models, and interpretations, Handbook on data envelopment analysis, 2011, 65, P.1-39. Doi:10.1007/978-1-4419-6151-8_1
[23] Higuerey, A., Viñan-Merecí, C., Malo-Montoya, Z. and Martínez-Fernández, V.A., Data Envelopment Analysis (DEA) for Measuring the efficiency of the hotel industry in Ecuador, Sustainability, 2020, 12, P.1590. Doi:10.3390/su12041590
[24] Farrell, M.J., The measurement of productive efficiency, Journal of the Royal Statistical Society: Series A (General), 1957, 120, P.253-281. Doi:10.2307/2343100
[25] Yun-fei, L. O. N. G., Y. A. N. G. Hui, and Z. H. U. Yan., A Study on The Efficiency Evaluation of Technology Finance Development Based on PCA-DEA-Moran Index, Journal of Guizhou University of Finance and Economics,2018,36,P.54-56.Doi:10.1078/1844-6576/1368/1/052055
[26] Charnes, A., Cooper, W.W., and Rhodes, E., Measuring the efficiency of decision making units, European journal of operational research, 1978, 26, P.429-444. Doi:10.1080/02331930902878333
[27] Banker, R.D., Charnes, A., Cooper, W.W. and Clarke, R., Constrained game formulations and interpretations for data envelopment analysis, European Journal of Operational Research,1989.40, P.299-308. Doi:10.1023/A:1018949800069
[28] Banker, R.D., Charnes, A. and Cooper,W.W.,Some models for estimating technical and scale inefficiencies in data envelopment analysis,Management science, 1984, 30, P.1078-1092. Doi: 10.1155/2009/721279
[29] Jiang, T., Zhang, Y., and Jin, Q., Sustainability efficiency assessment of listed companies in China: a super-efficiency SBM-DEA model considering undesirable output, Environmental Science and Pollution Research, 2021, 28, P.47588-47604. Doi:10.1007/s11356-021-13997-1
[30] Boussofiane, A., Dyson, R. G., and Thanassoulis, E., Applied data envelopment analysis, European Journal of Operational Research, 1991, 52, P. 1–15. Doi:10.1016/0377-2217(91)90331-O
[31] Zhu, R., Hu, X., Li, V. and Liu, C., Investigating economic roles of multinational construction industries: A super-efficiency DEA approach, Applied economics, 2021, 53, P.4810-4822. Doi:10.1080/00036846.2021.1910133
[32] He, Y. H., Wang, L. B., He, Z. Z., Xie, M. A., fuzzy TOPSIS and rough set based approach for mechanism analysis of product infant failure. Engineering Applications of Artificial Intelligence,2016, 47,P. 25-37.Doi:10.1016/j.engappai.2015.06.002
[33] Abdel-Basset, M., Manogaran, G., Gamal, A., & Smarandache, F., A group decision making framework based on neutrosophic TOPSIS approach for smart medical device selection, Journal of medical systems, 2019. 43,P.38-45.Doi :10.1007/s10916-019-1156-1
[34] Hwang, C.L. and Yoon, K., Methods for multiple attribute decision making,In Multiple attribute decision making,1981,25, P.58-191.Doi :10.1590/2236-9996.2016-3702
[35] Ren, L., Zhang, Y., Wang, Y., Sun, Z., Comparative analysis of a novel M-TOPSIS method and TOPSIS, Applied Mathematics Research eXpress, 2007, 33, P.126- 137. Doi :10.1093/amrx/abm005
[36] Tsaur, S. H., Chang, T. Y., Yen, C. H., The evaluation of airline service quality by fuzzy MCDM, Tourism management, 2002, 23, P.107-115. Doi :10.1016/j.tourism management.2015.05.006
[37] Ibrahim, A., Surya, R. A., The implementation of simple additive weighting (SAW) method in decision support system for the best school selection in Jambi, Journal of Physics: Conference Series, 2019, 67, P.120-154. Doi :10.1088/1742-6596/1338/1/012054
[38] Mousavi-Nasab, S. H., Sotoudeh-Anvari, A., A comprehensive MCDM-based approach using TOPSIS, COPRAS and DEA as an auxiliary tool for material selection problems, Materials & Design, 2017, 121, P. 237–253. Doi :10.1016/j.matdes.2017.02.041
[39] Lessambo, F. I., Financial Statements, Analysis and Reporting, 2018, 1, P.1-23. Doi:10.1007/978-3-319-99984-5_1
[40] Han, T., Han, X., An Empirical Analysis of the Service Efficiency of Basic Public Education Based on the BCC-DEA Model of Neural Network Computing Principles, Journal of Physics: Conference Series, 2021, 3, P.41-48. Doi :10.1088/1742-6596/1865/4/042131
[41] Dobrovič, J., Čabinová, V., Gallo, P., Partlová, P., Váchal, J., Balogová, B., Orgonáš, J., Application of the DEA Model in Tourism SMEs: An Empirical Study from Slovakia in the Context of Business Sustainability, Sustainability, 2021, 13, P.74-79,2021. Doi:10.3390/su13137422
[42] Toloe, M. Joushaqani, S., Centralized output acquisition models and centralized input allocation in Data Envelopment Analysis,Journal of Industrial Management, 2010, 2, P.17-30. Doi :10.1367/J073v7_08
[43] Cooper, W. W., Seiford, L. M., Tone, K., Data envelopment analysis: a comprehensive text with models, applications, references and DEA-solver software, 2007,76, P.1–40. Doi:10.1300/J073v21n04_07
[44] Lin, T. T., Lee, C. C., Chiu, T. F., Application of DEA in analyzing a bank’s operating performance. Expert systems with applications,2009, 43,P.8883–8891,2009.Doi:10.1016/j.eswa.2008.11.018
[45] Khamoie, F., Shokrolah Tabar Aktij, M., Moazeni, B., Sehhat, S., An Application of DEA-MCDM Compilation Model for Evaluating Relative Efficiency and Ranking of Iranian Insurance Companies, Iranian Journal of Insurance Research, 2018, 66, P.1–22, Doi:10.22056/jir.2018.108794.2208
[46] Asgari, M., Abbasi, A., Comparing MADM and artificial neural network methods for evaluating suppliers in multiple sourcing decision, Decision Science Letters, 2015, 39, P.193–202. Doi: 10.5267/j.dsl.2014.12.003
[47] Amiri ,M., and Jahani, S., Application of IDEA/AHP for Supplier evaluation and Selection, Industrial Managment Journal, 2010, 46, P.5–22. Doi:10.1300/J073v21n04_07
[48] Săcărin, M., consequences on the financial statements and financial indicators,The Audit Financiar journal, 2017, 145, P.114-118. Doi:10.20869/AUDITF/2017/145/114
[49] Nedaei, H., Naini, S.G.J., and Makui, A., A dynamic DEA model to measure the learning rates of efficient frontier and DMUs: An application to oil and gas wells drilling, Computers & Industrial Engineering, 2020,144, P.106-168. Doi :10.1016/j.cie.2020.106434
[50] Wong, W.P., Deng, Q., Efficiency analysis of banks in ASEAN countries,Benchmarking: An International Journal, 2016, 134, P.123-129. Doi :10.1108/BIJ-11-2013-0102