Please enter verification code
Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering
International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 1, February 2014, Pages: 103-110
Received: Jan. 23, 2014; Published: Feb. 20, 2014
Views 4268      Downloads 212
Veysel Kula, Department of International Trade and Finance, AfyonKocatepe University, Afyonkarahisar, Turkey
Ender Baykut, Department of Management in English, AfyonKocatepe University, Afyonkarahisar, Turkey
Article Tools
Follow on us
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.
Borsa Istanbul, Corporate Governance Index, Corporate Governance Ratings, TOPSIS Method
To cite this article
Veysel Kula, Ender Baykut, Re-ranking of Corporate Governance Ratings of BIST XKURY Companies Based on TOPSIS Method of Ordering, International Journal of Economics, Finance and Management Sciences. Vol. 2, No. 1, 2014, pp. 103-110. doi: 10.11648/j.ijefm.20140201.21
OECD (1998), Principles of Corporate Governance,
Onakoya, A. B. O., Ofoegbu, D. I. &Fasanya, I. O, (2012). Corporate Governance and Bank Performance: A Pooled Study of Selected Banks in Nıgeria, European Scientific Journal, Issue 8(28), pp 155-164.
Shleifer, A., &Vishny. R.W., (1997). A Survey of Corporate Governance. The Journal of Fınance, Issue 52(2), pp 737-783
OECD Principles of Corporate Governance, OECD Publishing, Revised Version, 2004.
Needless, B. E., Turel, A., Sengur, E. D. &Turel, A., (2012). Corporate Governance in Turkey: Issues and Practices of High Performance Companies. Accounting and Management Information Systems, Issue 11(4), pp 510-531.
BIST, 2014. Corporate Governance Index. [Available at]:
CMB, Capital Market Board of Turkey (2007) Communiqué on Principles Regarding Ratings and Agencies, Serial: VIII, No: 51,, January 18, 2014.
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.
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.
Saha Ratting, (2014). Rating Definitions, , accessed January 18, 2014.
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.
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.
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.
Bhutio, P.W. &Phipon, R. (2012), Application of Ahp and Topsis method for supplier selection problem. IOSR Journal of Engineering, Volume 2, Issue 10, pp 43-50
Yukcu, S. &Atagan, G. (2010). TOPSIS YöntemineGörePerformansDeğerleme. MuhasebeveFinansmanDergisi, Sayı: 45, pp.28-35.
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
Conkar, K., Elitaş, C. &Atar, G. (2011). IMKB KurumsalYönetimEndeksi’ndeki (XKURY) FirmalarınFinansalPerformanslarınınTopsisYöntemiileÖlçümüveKurumsalYönetimNotuileAnalizi, İstanbul Üniversitesi, İktisatMecmuasıDergisi, Cilt: 61(1), pp. 81-115,
Velasquez, M. & Hester, P. T. (2013). An Analysis of Multi-Criteria Decision Making Methods. International Journal of Operations Research, Vol. 10(2), pp.56-66.
Hung C.C. & Chen L.H. (2009). A Fuzzy TOPSIS Decision Making Model with Entropy Weight under Intuitionistic Fuzzy Environment. Proceedings of the International Multi-Conference of Engineers and Computer Scientists IMECS, Hong Kong.
Hwang, C.L & Yoon, K. (1981). Multiple Attribute Decision Making: Methods and Applications. New York: Springer-Verlag.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186