INTEGRATED NEUTROSOPHIC DEMATEL, TOPSIS, AND GRA APPROACH FOR FINANCIAL RATIO PERFORMANCE EVALUATION OF NASDAQ EXCHANGE
DOI:
https://doi.org/10.23055/ijietap.2024.31.1.8523Keywords:
Neutrosophic DEMATEL, TOPSIS, Financial RatioAbstract
Accounting and economic-based financial metrics play a crucial role in-stock selection or stock ranking by providing objective and quantifiable measures of a company's financial health and performance. These metrics are used by investors, analysts, and portfolio managers to assess the potential risks and returns associated with investing in a particular stock. This study aims to contribute to stock selection and ranking methodologies by proposing a novel Multi-Criteria Decision-Making (MCDM) model. The model integrates the Decision-Making Trial and Evaluation Laboratory (DEMATEL), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), and Grey Relational Analysis (GRA) approaches within a neutrosophic environment. Focusing on companies listed on the NASDAQ stock exchange, the research evaluates financial metrics from June 2018 to May 2022, specifically in the Information Technology sector across eight industries. The financial metrics are categorized into two groups: accounting-based financial measures (AFM) and economic value-based financial measures (EFM). Two experts assess the data, and the neutrosophic DEMATEL approach is employed to calculate the weights of the criteria. Subsequently, companies are ranked using neutrosophic TOPSIS and GRA methods. In conclusion, the study conducts a sensitivity analysis using the neutrosophic GRA method to validate the efficiency of the ranking. This research significantly contributes to the field by introducing a comprehensive MCDM model that amalgamates various decision-making techniques within a neutrosophic framework. The results not only provide valuable insights into stock ranking on the NASDAQ stock exchange but also demonstrate the efficacy of the proposed methodology. The integration of DEMATEL, TOPSIS, and GRA in a neutrosophic environment adds originality to the existing literature on financial metrics and MCDM models in stock selection.
Published
How to Cite
Issue
Section
License
The Author(s) must formally transfer each article's copyright before publication in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated.
You agree that the copyright of your article to be published in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE.
The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgments are given regarding copyright notice and reference to the original publication.
The Author(s) warrant(s) that the article is Author's original work and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and credit the article's sources.
The author also warrants that the article contains no libelous or unlawful statements and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire," the employer or an authorized representative of the employer.
The journal does not provide the author copy of the final paper when it is published. The author(s) can make(s) a subscription to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE if they want to get the final paper that has already been published.
The journal is registered with the Library of Congress (ISSN # 1943-670X). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the journal.
The author reserves patent and trademark rights and the right to use all or part of the information contained in the article in future non-commercial works.
