Systems Science and Applied Mathematics
Articles Information
Systems Science and Applied Mathematics, Vol.1, No.1, Aug. 2016, Pub. Date: Jul. 27, 2016
Financial Analysis on the Company Performance in Malaysia with Multi-Criteria Decision Making Model
Pages: 1-7 Views: 3545 Downloads: 2653
Authors
[01] Liew Kah Fai, Department of Physical and Mathematical Science, Faculty of Science, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
[02] Lam Weng Siew, Department of Physical and Mathematical Science, Faculty of Science, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, Centre for Business and Management, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
[03] Lam Weng Hoe, Department of Physical and Mathematical Science, Faculty of Science, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, Centre for Business and Management, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
Abstract
In stock market investment, an appropriate and accurate financial analysis is needed to be adopted on the evaluation of the company performance. The investors can analyze the financial performance of the company scientifically for their investment by using a multi-criteria decision making model which is Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) model. The objectives of this study are to evaluate, compare and rank the overall performance of the companies from the financial sector in Malaysia stock market with TOPSIS model. The overall performance of the companies is evaluated in terms of seven financial ratios. In this study, the data consists of 23 companies from the financial sector in Malaysia stock market. The period of study is from year 2012 to 2014. The results show that HWANG, RCECAP, CIMB, AFG and LPI achieve the top five ranking within the study period. This study is significant to the investors because it is able to evaluate and rank the overall performance of the companies from the financial sector in Malaysia by considering all the financial ratios with TOPSIS mathematical model.
Keywords
TOPSIS, Optimal Solution, Ranking, Financial Ratios
References
[01] Li, H. and Sun, J. (2008). Ranking-order case-based reasoning for financial distress prediction. Knowledge-Based Systems Vol. 21(8),pp. 868-878.
[02] Tozum, H. (2002). Performance Evaluation of Banks. Journal of Banking and Finance Vol. 27, pp. 1-9.
[03] Hwang, C. L. and Yoon, K. (1981). Multiple Attribute Decision Making. Berlin: Springer-Verlag.
[04] Hasanloo, S., Karim, E., Mehregan, M. R. and Tehrani, R., (2013). Evaluating performance of companies by new management tools. Journal of Natural and Social Sciences Vol. 2(3), pp. 165-169.
[05] Yilmaz, B. B. and Konyar, A. M. (2013). Financial performance evaluation of publicly held lodging companies listed in Istanbul Stock Exchange with TOPSIS method. European Journal of Scientific ResearchVol. 95(1), pp. 143-151.
[06] Gündoğdu, A. (2015). Measurement of financial performance using TOPSIS method for foreign banks of established in Turkey between 2003-2013 years. International Journal of Business and Social ScienceVol. 6(1), pp. 139-151.
[07] İşseveroğlu, G. and Sezer, O. (2015). Financial performance of pension companies operating in Turkey with Topsis analysis method. International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 5(1), pp. 137-147.
[08] Cam, A. V., Cam, H. Ulutas, S. and Sayin, O. B. (2015). The role of TOPSIS method on determining the financial performance ranking of firms: an application in the Borsa Istanbul. International Journal of Econimics and Research 6(3): 29-38.
[09] Price, J. E., Haddock, M. D. and Brock, H. R. (1993). College accounting. 10th ed. New York: Macmillan/McGraw-Hill.
[10] Akguc, O. (2010). Financial statement analysis. 13rd ed. Istanbul: Arayis Publication.
[11] Östring, P., (2003). Profit-Focused Supplier Management. United State: American Management Association International.
[12] Jones, C. P. (2013). Investments analysis and management. 12nd ed. Asia: John Wiley & Sons.
[13] Hwang Capital Berhad, (2014). Year ended 31 July 2014 - Hwang Capital Group. [online] Available at: [Accessed 1 February 2016].
600 ATLANTIC AVE, BOSTON,
MA 02210, USA
+001-6179630233
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.