FORECASTING THE RANKINGS OF BANKS BY RETURN ON ASSETS IN TURKISH BANKING SECTOR WITH TOPSIS, Fuzzy TOPSIS AND GREY RELATIONAL ANALYSIS TECHNIQUES

Mehmet Ozcalici; Mete Bumin; Yucel Ayricay

Volume : IV, Issue : XII, December - 2015

FORECASTING THE RANKINGS OF BANKS BY RETURN ON ASSETS IN TURKISH BANKING SECTOR WITH TOPSIS, Fuzzy TOPSIS AND GREY RELATIONAL ANALYSIS TECHNIQUES

Mehmet Ozcalici, Mete Bumin, Yucel Ayricay

Abstract :

<p>Banks play an important role in any economy due to their unique mission of financial intermediation and asset allocation. Therefore, forecasting the rankings of banks for the next period becomes a crucial issue for decision makers in investment decision-making process. In this study, Technique for order of preference by similarity to ideal solution (TOPSIS), fuzzy TOPSIS and Grey Relational Analysis (GRA) have been adopted to forecast the rankings of return on asset of Turkish banking sector. Financial indicators dataset for the period of December 2014 is utilized to rank the performance of the banks and the results are compared with the actual rank of banks in the period March 2015. Overall results indicate that fuzzy TOPSIS outperformed other techniques in forecasting rankings of banks.</p>