EVALUATION OF TURKISH FACTORING COMPANY PERFORMANCES USING TOPSIS METHOD

Abstract

Most of the studies aiming to measure the financial performance of financial sector have handled banks, insurance companies, and pension companies. Factoring industry has been mostly neglected, although this industry is in an ascending trend in the World. The aim of this study is to evaluate the financial performance of Turkish factoring companies for the years between 2017 and 2019. This study also aims to be the first study, which examines all companies in the Turkish factoring industry, and to give an idea about sizes of those companies. For this purpose, TOPSIS method was implemented using equally weighted six criteria. The number of small companies in the best performing ten factoring companies was seven, five and six in 2019, 2018 and 2017 respectively. If the big and small companies are examined separately, it was observed that the number of companies owned by banks is increasing in the best performing ten big factoring companies. Since the number of factoring companies owned by banks is increasing in the best performing ten big factoring companies, small factoring companies should find ways to cooperate with banks if they desire to increase their size of operations.Most of the studies aiming to measure the financial performance of financial sector have handled banks, insurance companies, and pension companies. Factoring industry has been mostly neglected, although this industry is in an ascending trend in the World. The aim of this study is to evaluate the financial performance of Turkish factoring companies for the years between 2017 and 2019. This study also aims to be the first study, which examines all companies in the Turkish factoring industry, and to give an idea about sizes of those companies. For this purpose, TOPSIS method was implemented using equally weighted six criteria. The number of small companies in the best performing ten factoring companies was seven, five and six in 2019, 2018 and 2017 respectively. If the big and small companies are examined separately, it was observed that the number of companies owned by banks is increasing in the best performing ten big factoring companies. Since the number of factoring companies owned by banks is increasing in the best performing ten big factoring companies, small factoring companies should find ways to cooperate with banks if they desire to increase their size of operations.