Entropy-based VIKOR and TOPSIS approaches for financial performance ranking: evidence from Turkish cement companies listed on Borsa Istanbul
Quality and Quantity, vol.60, no.2, pp.5583-5605, 2026 (Scopus)
- Publication Type: Article / Article
- Volume: 60 Issue: 2
- Publication Date: 2026
- Doi Number: 10.1007/s11135-025-02494-z
- Journal Name: Quality and Quantity
- Journal Indexes: Scopus, IBZ Online, ABI/INFORM, Index Islamicus, Political Science Complete, Psycinfo
- Page Numbers: pp.5583-5605
- Keywords: Cement sector, Entropy, Financial performance, Multi-criteria decision making, TOPSIS, VIKOR
- Recep Tayyip Erdoğan University Affiliated: No
Abstract
Assessing the financial performance of an enterprise is crucial for demonstrating the effectiveness of the management team, influencing investor decision-making regarding stocks, and meeting the expectations of lending institutions. Cement companies prioritise strengthening their capital structures to better withstand economic shocks. Additionally, these companies aim to use their resources more efficiently to reduce costs, increase sales, boost profits, and achieve faster growth. Accurate evaluations of the financial performance of cement companies are crucial for both the global economic landscape and their impact on the local economy. Consequently, financial performance evaluation models are essential for these companies to enhance their long-term financial results. However, to date, there appears to be no existing model that suggests periodic monitoring of the financial performance of cement companies based on their financial ratios. The current study seeks to analyze the TOPSIS and VIKOR multi-criteria decision-making methods, utilizing an entropy approach among publicly traded cement sector companies based on BIST, data between 2018 and 2020. The objective is to disclose the results of these companies and rank them based on key criteria. Additionally, a comparative analysis was conducted using the VIKOR method. The results indicated that the rankings produced by the TOPSIS and VIKOR methods were similar for 2020 and 2021, though they differed slightly in 2022 and 2023. Generally, BSOKE, KONYA, and BTCIM ranked as the top three companies in both methods, while CIMSA, BASCM, and CMENT ranked the lowest. Furthermore, companies such as AKCNS, CMENT, BUCIM, GOLTS, and NUHCM showed fluctuations in their performance. The study discusses managerial implications and provides recommendations for stakeholders.