Evaluation on the Financial Performance of the Malaysian Banks with TOPSIS Model
[1]
Lam Weng Siew, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia;Centre for Business and Management, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
[2]
Liew Kah Fai, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
[3]
Lam Weng Hoe, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Business and Management, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
Banking sector plays a dominant role in the economies. The financial performance of the banking sector company can be determined by using a multi-criteria decision making model, namely Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) model. The objective of this study is to evaluate, compare and rank the financial performance of the Malaysian banks in Malaysia stock market with TOPSIS model. The overall financial performance of the companies is determined by six financial ratios. In this study, the data consists of eight Malaysian banks which are listed in Malaysia stock market. The period of study is from year 2011 until 2015. The results of this study show that CIMB Group Holdings Berhad achieves the first ranking, followed by Alliance Financial Group Berhad, AMMB Holdings Berhad, Affin Holdings Berhad, RHB Capital Berhad, Public Bank Berhad, Hong Leong Bank Berhad and Malayan Banking Berhad within the study period. This study is significant because it is able to evaluate, compare and rank the overall financial performance of the Malaysian banks by considering the important and significant financial ratios by using TOPSIS mathematical model.
Malaysian Banks, TOPSIS, Optimal Solution, Ranking, Financial Ratios
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