Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering

Veysel Kula; Ender Baykut

doi:doi:10.11648/j.ijefm.20140201.21

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Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering

Veysel Kula, Ender Baykut

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 1)

Received: 23 January 2014 Accepted: Published: 20 February 2014

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Abstract

This study aims at re-defining the corporate governance ratings of companies listed in Borsa Istanbul Corporate Governance Index (BIST XKURY). Corporate governance ratings are computed by taking the weighted average of four sub-categories, with the weights subjectively determined by the Capital Market Board. As each company in the index has the overall rating of more than eight, the ratings are only narrowly dispersed within a thin rating band of eight to ten, lacking ability in providing decision makers helpful information in terms of comparative strength of companies. This problem could be addressed by the use of TOPSIS based ranking.Using the ratings of 46 companies for 2013 in the index, TOPSIS method provides a new rank order that has a richer information content. By means of new scores, decision makers could evaluate how far companies closer to the ideal positive and negative solutions.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 1)
DOI	10.11648/j.ijefm.20140201.21
Page(s)	103-110
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Borsa Istanbul, Corporate Governance Index, Corporate Governance Ratings, TOPSIS Method

References

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[6]	BIST, 2014. Corporate Governance Index. [Available at]: http://borsaistanbul.com/en/indices/bist-stock-indices/corporate-governance-index.
[7]	CMB, Capital Market Board of Turkey (2007) Communiqué on Principles Regarding Ratings and Agencies, Serial: VIII, No: 51, http://www.spk.gov.tr/apps/teblig/displayteblig.aspx?id=313&ct=f&action=displayfile&ext=.pdf, January 18, 2014.
[8]	Ergin, E., (2012). Corporate Governance Ratings and Market-based Financial Performance: Evidence from Turkey. International Journal of Economics and Finance, Issue 4(9), pp 61-68.
[9]	Su H. A., Hsieh, C. H., Chang, C. Y. & Lin, F., (2013). Corporate Governance Rating System in Taiwan with Multi-Criteria Decision Making Methods. Contemporary Management Research, Issue 9(1), pp 3-12.
[10]	Saha Ratting, (2014). Rating Definitions, http://www.saharating.com/Page.aspx?PageId=37 , accessed January 18, 2014.
[11]	Feng, C.M. & Wang R.T., (2000). Performance Evaluation for Airlines Including the Consideration of Financial Ratios. Journal of Air Transport Management, 6, 133-142.
[12]	Hosseini, S.H., Ezazi M. E., HeshmatiM. R., Reza.S. M. &Moghadam,H. (2013). Top Companies Ranking Based on Financial Ratio with AHP-TOPSIS Combined Approach and Indices of Tehran Stock Exchange A Comparative Study.International Journal of Economics and Finance Vol. 5(3), pp.126-133.
[13]	Onder, E., Tas, N. &Hepsen, A. (2013). Performance Evaluation of Turkish Banks Using Analytical Hierarchy Process and TOPSIS Methods.Journal of International Scientific Publication: Economy & Business, Volume 7(1), pp.470-503.
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[15]	Yukcu, S. &Atagan, G. (2010). TOPSIS YöntemineGörePerformansDeğerleme. MuhasebeveFinansmanDergisi, Sayı: 45, pp.28-35.
[16]	Bulgurcu, B, K. (2012). Application of TOPSIS Technique for Financial Performance Evaluation of Technology Firms in Istanbul Stock Exchange Market. Procedia - Social and Behavioral Sciences 62 (2012) pp.1033 – 1040
[17]	Conkar, K., Elitaş, C. &Atar, G. (2011). IMKB KurumsalYönetimEndeksi’ndeki (XKURY) FirmalarınFinansalPerformanslarınınTopsisYöntemiileÖlçümüveKurumsalYönetimNotuileAnalizi, İstanbul Üniversitesi, İktisatMecmuasıDergisi, Cilt: 61(1), pp. 81-115,
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APA Style

Veysel Kula, Ender Baykut. (2014). Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering. International Journal of Economics, Finance and Management Sciences, 2(1), 103-110. https://doi.org/10.11648/j.ijefm.20140201.21

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ACS Style

Veysel Kula; Ender Baykut. Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering. Int. J. Econ. Finance Manag. Sci. 2014, 2(1), 103-110. doi: 10.11648/j.ijefm.20140201.21

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AMA Style

Veysel Kula, Ender Baykut. Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering. Int J Econ Finance Manag Sci. 2014;2(1):103-110. doi: 10.11648/j.ijefm.20140201.21

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@article{10.11648/j.ijefm.20140201.21,
  author = {Veysel Kula and Ender Baykut},
  title = {Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {2},
  number = {1},
  pages = {103-110},
  doi = {10.11648/j.ijefm.20140201.21},
  url = {https://doi.org/10.11648/j.ijefm.20140201.21},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140201.21},
  abstract = {This study aims at re-defining the corporate governance ratings of companies listed in Borsa Istanbul Corporate Governance Index (BIST XKURY).  Corporate governance ratings are computed by taking the weighted average of four sub-categories, with the weights subjectively determined by the Capital Market Board. As each company in the index has the overall rating of more than eight, the ratings are only narrowly dispersed within a thin rating band of eight to ten, lacking ability in providing decision makers helpful information in terms of comparative strength of companies. This problem could be addressed by the use of TOPSIS based ranking.Using the ratings of 46 companies for 2013 in the index, TOPSIS method provides a new rank order that has a richer information content. By means of new scores, decision makers could evaluate how far companies closer to the ideal positive and negative solutions.},
 year = {2014}
}

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TY  - JOUR
T1  - Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering
AU  - Veysel Kula
AU  - Ender Baykut
Y1  - 2014/02/20
PY  - 2014
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DO  - 10.11648/j.ijefm.20140201.21
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 103
EP  - 110
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20140201.21
AB  - This study aims at re-defining the corporate governance ratings of companies listed in Borsa Istanbul Corporate Governance Index (BIST XKURY).  Corporate governance ratings are computed by taking the weighted average of four sub-categories, with the weights subjectively determined by the Capital Market Board. As each company in the index has the overall rating of more than eight, the ratings are only narrowly dispersed within a thin rating band of eight to ten, lacking ability in providing decision makers helpful information in terms of comparative strength of companies. This problem could be addressed by the use of TOPSIS based ranking.Using the ratings of 46 companies for 2013 in the index, TOPSIS method provides a new rank order that has a richer information content. By means of new scores, decision makers could evaluate how far companies closer to the ideal positive and negative solutions.
VL  - 2
IS  - 1
ER  -

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Author Information

Veysel Kula

Department of International Trade and Finance, AfyonKocatepe University, Afyonkarahisar, Turkey
Ender Baykut

Department of Management in English, AfyonKocatepe University, Afyonkarahisar, Turkey

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APA Style

Veysel Kula, Ender Baykut. (2014). Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering. International Journal of Economics, Finance and Management Sciences, 2(1), 103-110. https://doi.org/10.11648/j.ijefm.20140201.21

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ACS Style

Veysel Kula; Ender Baykut. Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering. Int. J. Econ. Finance Manag. Sci. 2014, 2(1), 103-110. doi: 10.11648/j.ijefm.20140201.21

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AMA Style

Veysel Kula, Ender Baykut. Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering. Int J Econ Finance Manag Sci. 2014;2(1):103-110. doi: 10.11648/j.ijefm.20140201.21

Copy | Download

@article{10.11648/j.ijefm.20140201.21,
  author = {Veysel Kula and Ender Baykut},
  title = {Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {2},
  number = {1},
  pages = {103-110},
  doi = {10.11648/j.ijefm.20140201.21},
  url = {https://doi.org/10.11648/j.ijefm.20140201.21},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140201.21},
  abstract = {This study aims at re-defining the corporate governance ratings of companies listed in Borsa Istanbul Corporate Governance Index (BIST XKURY).  Corporate governance ratings are computed by taking the weighted average of four sub-categories, with the weights subjectively determined by the Capital Market Board. As each company in the index has the overall rating of more than eight, the ratings are only narrowly dispersed within a thin rating band of eight to ten, lacking ability in providing decision makers helpful information in terms of comparative strength of companies. This problem could be addressed by the use of TOPSIS based ranking.Using the ratings of 46 companies for 2013 in the index, TOPSIS method provides a new rank order that has a richer information content. By means of new scores, decision makers could evaluate how far companies closer to the ideal positive and negative solutions.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering
AU  - Veysel Kula
AU  - Ender Baykut
Y1  - 2014/02/20
PY  - 2014
N1  - https://doi.org/10.11648/j.ijefm.20140201.21
DO  - 10.11648/j.ijefm.20140201.21
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 103
EP  - 110
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20140201.21
AB  - This study aims at re-defining the corporate governance ratings of companies listed in Borsa Istanbul Corporate Governance Index (BIST XKURY).  Corporate governance ratings are computed by taking the weighted average of four sub-categories, with the weights subjectively determined by the Capital Market Board. As each company in the index has the overall rating of more than eight, the ratings are only narrowly dispersed within a thin rating band of eight to ten, lacking ability in providing decision makers helpful information in terms of comparative strength of companies. This problem could be addressed by the use of TOPSIS based ranking.Using the ratings of 46 companies for 2013 in the index, TOPSIS method provides a new rank order that has a richer information content. By means of new scores, decision makers could evaluate how far companies closer to the ideal positive and negative solutions.
VL  - 2
IS  - 1
ER  -

Copy | Download