MEASUREMENT OF FIRM PERFORMANCE USING ACCOUNTING BASED RATIOS WITH ARTIFICIAL NEURAL NETWORKS AND DECISION TREE METHODS: A STUDY IN BORSA ISTANBUL

Authors : Mustafa KILLI, Yusuf IŞIK

Pages : 89-102

View : 59 | Download : 80

Publication Date : 2023-06-30

Article Type : Research Paper

Abstract :Sustainability, which is one of the most basic purpose of companies, can be achieved with high company performance. Many financial and non-financial performance measurement tools can be used to measure firm performance. Performance evaluation is an important management accounting tool as a process that allows future decisions to be based on solid foundations. Ratio analysis is one of the financial measurement tools used to measure firm performance. These ratios, which are sometimes a leading indicator, may indicate that companies should take various measures. This study aimed to determine the relationship between accounting-based ratios and firm performance using artificial neural networks and decision tree methods, which are data mining techniques. For this purpose, analyzes were carried out on the ratios obtained by using the 2021 financial statements of the companies in the Borsa Istanbul insert ignore into journalissuearticles values(BIST); holdings and investment companies sector. As a result, when both data mining methods were compared, it was seen that the analysis prediction values made with artificial neural networks were more consistent than the decision tree model.
Keywords : Yönetim Muhasebesi, Finansal Performans Ölçümü, Yapay Sinir Ağları, Karar Ağacı