Investigating the Mathematical Models (TOPSIS, SAW) to Prioritize the Investments in the Accepted Pharmaceutical

Advances in Mathematical Finance and Applications

مقاله 6، دوره 5، شماره 2، تیر 2020، صفحه 215-227   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2020.1880616.1312

نویسنده

Reza Jamei^*

Department of Accounting, University of Kurdistan (UOK), Sanandej, Iran

چکیده

Considering the importance of decision- making in investment, this study prioritizes the accepted pharmaceutical companies in Tehran stock exchange, during 2013-2017 using the following criteria: the return on investment (ROI), reminded increment (RI), return on sales (ROS) and the earnings per share (EPS). Price per earnings ratio of each share (P/E), return on equity (ROE), return on assets (ROA).
After prioritization mentioned companies, they were ranked using mathematical models: SAW and TOPSIS. The object of the study is to encourage financial decision- makers to use math models (SAW, TOPSIS) instead of previous accounting techniques in order to represent the pharmaceutical companies more perfect than before.
The comparison between ranked mentioned companies' according to two math models (SAW, TOPSIS) showed that there is not a significant deference between ranks obtained from SAW and TOPSIS. Furthermore, it is found out that the ranking of the involved companies' was not the same during the study. Some had better process while others not only didn’t have improvement but also gained worse ranking during the study than before.

کلیدواژه‌ها

The Multi-Criteria؛ Decision Making- performance Evaluation Pharmaceutical؛ companies؛ TOPSIS and SAW Models

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