The Nexus of Piotroski F-score Components and MCDM Methods in Measuring Financial Performance: An Application of MEREC-Based MARCOS

Abstract

The aim of this study is to analyze the financial performance of firms in the Borsa Istanbul IT sector. In the study over the period 2023:Q1-2023:Q4, the MEREC method was used to weight the criteria. After the criteria weights are determined, the financial performance rankings of the firms are determined by the MARCOS method. In addition, sensitivity analyses based on two different scenarios are conducted in the study and the findings obtained are examined comparatively. Unlike other studies in the literature, Piotroski F-score components were utilized in criteria selection. Although there is a difference in the criteria weights obtained by the MEREC method in terms of periods, it is determined that the criteria with the highest weights are asset turnover ratio and return on assets ratio. On the other hand, it was concluded that the lowest criterion weight was the current ratio. AAsAa result of the study, it was determined that the firms with the best and the lowest performance fluctuated over the analysis periods. However, when the results are evaluated in general, the firms with the best performance are SMART and PAPIL. The firms with the lowest performance were found to be KAREL and OBASE.