A multicriteria approach for evaluating the performance of industrial firms

Diakoulaki, D; Mavrotas, G; Papayannakis, L

dc.contributor.author	Diakoulaki, D	en
dc.contributor.author	Mavrotas, G	en
dc.contributor.author	Papayannakis, L	en
dc.date.accessioned	2014-03-01T01:08:37Z
dc.date.available	2014-03-01T01:08:37Z
dc.date.issued	1992	en
dc.identifier.issn	0305-0483	en
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/10612
dc.subject	Financial ratios	en
dc.subject	Interfirm comparisons	en
dc.subject	Multicriteria analysis	en
dc.subject	Ratio analysis	en
dc.subject.classification	Management	en
dc.subject.classification	Operations Research & Management Science	en
dc.subject.other	CORPORATE	en
dc.title	A multicriteria approach for evaluating the performance of industrial firms	en
heal.type	journalArticle	en
heal.identifier.primary	10.1016/0305-0483(92)90021-X	en
heal.identifier.secondary	http://dx.doi.org/10.1016/0305-0483(92)90021-X	en
heal.language	English	en
heal.publicationDate	1992	en
heal.abstract	Multivariate techniques have been widely used for the explanation and prediction of the firm's behaviour. However, in practice, the comparative evaluation and ranking of companies is usually based on the consideration of a single measure of corporate success. But the definition of the most appropriate measure gave rise to a considerable debate. This paper tries to utilise the results of a multicriteria analysis, applied to a large sample of Greek pharmaceutical industries, in order to indicate how suitable some common financial ratios are as indices of the firm's overall performance. The results show that profitability constitutes the most representative measure for the differentiation and ranking of companies. Labour productivity and market share are the best indicators of the business' success, while business' failure is more closely related to ratios indicating long- and short-term solvency. This means that a sound capital structure is a necessary but not a sufficient enough condition to ensure the profitable and effective operation of the firm.	en
heal.publisher	PERGAMON-ELSEVIER SCIENCE LTD	en
heal.journalName	Omega	en
dc.identifier.doi	10.1016/0305-0483(92)90021-X	en
dc.identifier.isi	ISI:A1992JC70300006	en
dc.identifier.volume	20	en
dc.identifier.issue	4	en
dc.identifier.spage	467	en
dc.identifier.epage	474	en