A Multi-Criteria Decision-Making Model for Performance Evaluation Based on PSI–PF-COBRA

Abstract

The aim of this study is to evaluate the financial and economic performance of companies operating in the chemical, pharmaceutical, petroleum, and plastic products sectors traded on Borsa Istanbul (BIST) within a holistic framework. Because traditional financial ratio analyses alone are insufficient, the study integrates the PSI and PF-COBRA methods, which are multi-criteria decision-making methods. The study first examines the sector's place in the Turkish economy, its relationship with macroeconomic indicators, and the interactions between growth, investment, and foreign trade in detail. Then, using data from the 2023/12 period, 15 companies traded on the BIST were evaluated based on 14 criteria. Criteria weights were determined based on the opinions of decision-makers from various expert groups. During the analysis, the importance of the criteria was first determined using the PSI method, and then the PF-COBRA method was used to rank the companies in terms of their distance from ideal and anti-ideal solutions. The results reveal that companies in the sector perform at different levels in terms of financial strength and economic competitiveness. According to the findings, companies with high R&D investments, strong export capacity, and balanced leverage rank higher, while companies with high leverage and limited R&D and innovation capacity remain at the bottom. The research's contributions are highlighted in three dimensions: (i) the joint analysis of financial and economic indicators in the Turkish chemical sector, (ii) the adaptation of the PSI–PF–COBRA method integration, which has limited application in the literature, to the sector, and (iii) the provision of a strategic decision-support tool for investors, managers, and policymakers. The study's results shed light on the development of policies and investment strategies that will enhance the sector's sustainable growth capacity and competitiveness.