Skip to main content

Analysis on the Financial Performance of Companies with TOPSIS Model

  • Conference paper
  • First Online:
Proceedings of the 8th International Conference on Computational Science and Technology

Part of the book series: Lecture Notes in Electrical Engineering ((LNEE,volume 835))

  • 513 Accesses

Abstract

Property development industry is sensitive to the economic condition. Due to land scarcity and population migration, there has been an imbalance in the supply and demand of properties in Malaysia. Covid-19 has also negatively affected customer confidence in the property development market. Given that the property development industry is capital intensive, proper financial management by these property companies have to be performed consistently to ensure the companies are financially viable. To facilitate these companies in decision making by evaluating the effectiveness of their strategies and to provide insights to the current and potential investors, this paper intends to propose a research framework to analyze the financial performance of property companies in Malaysia using Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) model. The result shows that SIME, IOIPG and MAHSING are the top three performers in financial performance among the companies studied. This paper is significant as it helps to analyze the financial performance of property companies using TOPSIS model while distances with the ideal solutions also serve as the guidelines for further improvements.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 229.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 299.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 299.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Costello G, Preller F (2010) Property development principles and process—an industry analysis. Pac Rim Prop Res J 16(2):171–189

    Google Scholar 

  2. Yusof A (2021) Malaysia’s property market to ensure challenging 2021, recovery starts in 2022. https://www.nst.com.my/business/2021/01/660907/malaysias-property-market-endure-challenging-2021-recovery-starts-2022. Last accessed 24 Feb 2021

  3. National Property Information Centre (2021) https://napic.jpph.gov.my/portal. Last accessed 24 Feb 2021

  4. MahSing (2020) You can afford a property now! This is what you need to know about HOC 2020. https://www.mahsing.com.my/blog/about-hoc-home-ownership-campaign-2020/#5db81bca535d29ee8. Last accessed 24 Feb 2021

  5. The Edge Malaysia (2021) Cover story: what to look out for in the property market this year. https://www.theedgemarkets.com/article/cover-story-what-look-out-property-market-year. Last accessed 24 Feb 2021

  6. Chan TK, Aziz ARA (2017) Financial performance and operating strategies of Malaysian property development companies during the global financial crisis. J Financ Manage Property Const 22(2):174–191

    Article  Google Scholar 

  7. Zekri MM, Razali MN (2020) Volatility dynamics of Malaysian listed property companies within the Asian public property markets by using a switching regime approach. J Financ Manag Prop Constr 25(1):5–39

    Article  Google Scholar 

  8. Kathy B (2020) Rise in foreign property buyers expected this year. https://www.nst.com.my/property/2020/01/554821/rise-foreign-property-buyers-expected-year. Last accessed 24 Feb 2021

  9. Naderi S, Minouei M, Gashti H (2013) Asset and liability optimal management mathematical modeling for bank. J Basic Appl Sci Res 3(1):484–493

    Google Scholar 

  10. Lam WS, Lam WH, Chen JW (2021) Optimization on the bank financial management using two-stage goal programming model. Lect Notes Electr Eng 724:117–126

    Article  Google Scholar 

  11. Chen JW, Lam WS, Lam WH (2019) Optimization and comparison of bank financial management in Malaysia with goal programming model. J Adv Res Dyn Control Syst 11(12S):39–46

    Google Scholar 

  12. Lam WH, Yeoh HB, Lam WS, Lai AJX (2020) Evaluation on the financial performance of technology companies in Malaysia with Zmijewski model. Malaysian J Math Sci 14(S):81–92

    Google Scholar 

  13. Lam WH, Yeoh HB, Lam WS, Chen JW (2018) Analysis on the performance of technology companies with Z score model. Bull Electr Eng Inf 7(4):633–639

    Google Scholar 

  14. Lam WS, Lam WH, Jaaman SH, Liew KF (2021) Performance evaluation of construction companies using integrated entropy-fuzzy VIKOR model. Entropy 23(3):320, 1–16

    Google Scholar 

  15. Ginevičius R, Podvezko V (2006) Assessing the financial state of construction enterprises. Technol Econ Dev Econ 12:188–194

    Article  Google Scholar 

  16. Lam WS, Jaaman SH, Lam WH (2019) An enhanced mean-Gini extended model in portfolio optimization with different level of risk aversion. ASM Sci J 12(6):41–46

    Google Scholar 

  17. Lam WS, Jaaman SH, Ismail H (2014) Comparison between two-stage regression model and variance model in portfolio optimization. J Appl Sci Agric 9(18):36–40

    Google Scholar 

  18. Lam WS, Jaaman SH, Ismail H (2015) The impact of human behaviour towards portfolio selection in Malaysia. Procedia Soc Behav Sci 172:674–678

    Article  Google Scholar 

  19. Lam WS, Jaaman SH, Ismail H (2015) Investigation on relationship between human behavior and portfolio selection problem in Malaysia using decision making model. Adv Environ Biol 9(7):6–10

    Google Scholar 

  20. Lam WS, Lam WH (2016) Strategic decision making in portfolio management with goal programming model. Am J Oper Manage Inf Syst 1(1):34–38

    Google Scholar 

  21. Lam WS, Jaaman SH, Ismail H (2015) An empirical study on the characteristics of high risk aversion behavior in portfolio decision making using regression model. Adv Environ Biol 9(7):17–20

    Google Scholar 

  22. Lam WS, Liew KF, Lam WH (2016) Evaluation on the efficiency of healthcare companies in Malaysia with data envelopment analysis model. SCIREA J Math 1(1):95–106

    Google Scholar 

  23. Hasanloo S, Karim E, Mehregan MR, Tehrani R (2013) Evaluating performance of companies by new management tools. J Nat Soc Sci 2(3):165–169

    Google Scholar 

  24. Lai AJX, Lam WH, Lam WS (2019) Evaluation on the credit risk of companies in Malaysia with enhanced data envelopment analysis model. J Adv Res Dyn Control Syst 11(12S):30–38

    Google Scholar 

  25. Hu J, Nian Z, Wang X (2019) Research on financial performance evaluation on artificial intelligence listed companies in China based on DEA method. In: 2019 Portland international conference on management of engineering and technology. IEEE Xplore, Portland, pp 1–6

    Google Scholar 

  26. Lam WS, Chen JW, Lam WH (2016) An empirical study on the selection of fast food restaurants among the undergraduates with AHP model. Am J Inf Sci Comput Eng 2(3):15–21

    Google Scholar 

  27. Lam WS, Leong WB, Lam WH (2015) Selection of mobile network operator based on multi-criteria decision making model using Analytic Hierarchy Process. Math Stat J 1(1):12–18

    Google Scholar 

  28. Lam WS, Bishan RS, Lam WH (2017) An empirical study on the mold machine-tool selection in semiconductor industry with Analytic Hierarchy Process model. Adv Sci Lett 23(9):8286–8289

    Article  Google Scholar 

  29. Lam WS, Liew KF, Lam WH (2018) Investigation on the efficiency of financial companies in Malaysia with data envelopment analysis model. J Phys Conf Ser 995(1):012021

    Google Scholar 

  30. Lam WS, Liew KF, Lam WH (2018) An optimal control on the efficiency of technology companies in Malaysia with Data Envelopment Analysis model. J Telecommun Electron Comput Eng 10(1):107–111

    Google Scholar 

  31. Lam WH, Lam WS, Liew KF (2017) Improvement on the efficiency of technology companies in Malaysia with Data Envelopment Analysis model. Lect Notes Comput Sci 10645:19–30

    Article  Google Scholar 

  32. Lam WS, Chen JW, Lam WH (2017) Data driven decision analysis in bank financial management with goal programming model. Lect Notes Comput Sci 10645:681–689

    Article  Google Scholar 

  33. Lam WS, Jaaman SH, Ismail H (2014) Index tracking modelling in portfolio optimization with mixed integer linear programming. J Appl Sci Agric 9(18):47–50

    Google Scholar 

  34. Lam WS, Jaaman SH, Ismail H (2015) An empirical comparison of different optimization models in enhanced index tracking problem. Adv Sci Lett 21(5):1278–1281

    Article  Google Scholar 

  35. Liew KF, Lam WS, Lam WH (2017) An empirical evaluation on the efficiency of the companies in Malaysia with data envelopment analysis model. Adv Sci Lett 23(9):8264–8267

    Article  Google Scholar 

  36. Lam WS, Jaaman SH, Ismail H (2015) The impact of different economic scenarios towards portfolio selection in enhanced index tracking problem. Adv Sci Lett 21(5):1285–1288

    Article  Google Scholar 

  37. Lam WS, Lee WK, Lam WH (2015) Multi-criteria decision making in job selection problem using Analytic Hierarchy Process model. Math Stat J 1(2):3–7

    Google Scholar 

  38. Liew KF, Lam WS, Lam WH (2016) Financial analysis on the company performance in Malaysia with multi-criteria decision making model. Syst Sci Appl Math 1(1):1–7

    Google Scholar 

  39. Lam WS, Liew KF, Lam WH (2017) Evaluation on the financial performance of the Malaysian banks with TOPSIS model. Am J Serv Sci Manage 4(2):11–16

    Google Scholar 

  40. Lam WS, Lam WH, Liew KF (2018) Data analysis on the performance of technology sector in Malaysia with Entropy-TOPSIS model. Commun Comput Inf Sci 886:194–203

    Google Scholar 

  41. Conejero JM, Preciado JC, Prieto AE, Bas MC, Bolos VJ (2021) Applying data driven decision making to rank vocational and educational training programs with TOPSIS. Decis Support Syst 142(113470):1–10

    Google Scholar 

  42. Mathew M, Chakrabortty RK, Ryan MJ (2020) A novel approach integrating AHP and TOPSIS under spherical fuzzy sets for advanced manufacturing system selection. Eng Appl Artif Intell 96(103988):1–13

    Google Scholar 

  43. Javad MOM, Darvishi M, Javad AOM (2020) Green supplier selection for the steel industry using BWM and fuzzy TOPSIS: a case study of Khouzestan steel company. Sustain Futures 2(100012):1–11

    Google Scholar 

  44. Kilic HS, Yalcin AS (2020) Modified two-phase fuzzy goal programming integrated with IF-TOPSIS for green supplier selection. Appl Soft Comput J 93(106731):1–22

    Google Scholar 

  45. Rashidi K, Cullinane K (2019) A comparison of fuzzy DEA and fuzzy TOPSIS in sustainable supplier selection: implications for sourcing strategy. Expert Syst Appl 121:266–281

    Article  Google Scholar 

  46. Albahri A, Hamid RA, Albahri OS, Zaidan AA (2021) Detection-based prioritization: framework of multi-laboratory characteristics for asymptomatic Covid-19 carriers based on integrated Entropy-TOPSIS methods. Artif Intell Med 111(101983):1–15

    Google Scholar 

  47. Hsieh M, Wang EM, Lee W, Li L, Hsieh C, Tsai W, Wang C, Huang J, Liu T (2018) Application of HFACS, fuzzy TOPSIS and AHP for identifying important human error factors in emergency departments in Taiwan. Int J Ind Ergon 67:171–179

    Article  Google Scholar 

  48. Zhang L, Zhan J, Yao Y (2020) Intuitionistic fuzzy TOPSIS method based on CVPIFRS models: an application to biomedical problems. Inf Sci 517:315–339

    Article  MathSciNet  Google Scholar 

  49. Yousefzadeh S, Yaghmaeian K, Mahvi AH, Nasseri S, Alavi N, Nabizadeh R (2020) Comparative analysis of hydrometallurgical for the recovery of Cu from circuit boards: optimization using response surface and selection of the best technique by two-step fuzzy AHP-TOPSIS method. J Clean Prod 249(119401):1–20

    Google Scholar 

  50. Luo C, Ju Y, Gonzalez EDRS, Dong P, Wang A (2020) The waste-to-energy incineration plant site selection based on hesitant fuzzy linguistic Best-Worst method ANP and double parameters TOPSIS approach: a case study in China. Energy 211(118564):1–15

    Google Scholar 

  51. Sedghiyan D, Ashouri A, Maftouni N, Xiong Q, Rezaee E, Sadeghi S (2021) Prioritization of renewable energy resources in five climate zones in Iran using AHP, hybrid AHP-TOPSIS and AHP-SAW methods. Sustain Energy Technol Assess 44(101045):1–14

    Google Scholar 

  52. Solangi YA, Tan Q, Mirjat NH, Ali S (2019) Evaluating the strategies for sustainable energy planning in Pakistan: an integrated SWOT-AHP and Fuzzy-TOPSIS approach. J Clean Prod 236(117655):1–14

    Google Scholar 

  53. Lam WH, Lam WS, Liew KF (2019) Performance analysis on telecommunication companies in Malaysia with TOPSIS model. Indonesian J Electr Eng Comput Sci 13(2):744–751

    Article  Google Scholar 

  54. Lam WS, Bakar MA, Lam WH, Liew KF (2017) Multi-criteria decision making in the selection of mobile network operators with AHP-TOPSIS model. J Eng Appl Sci 12:6382–6386

    Google Scholar 

  55. Lam WS, Lam WH, Liew KF, Chen JW (2018) An empirical study on the preference of fast food restaurants in Malaysia with AHP-TOPSIS model. J Eng Appl Sci 13:3226–3231

    Google Scholar 

  56. Bursa Malaysia (2021) Company announcements. https://www.bursamalaysia.com/market_information/announcements/company_announcement. Last accessed 25 Feb 2021

  57. Najadat H, Al-Daher I, Alkhatib K (2020) Performance evaluation of industrial firms using DEA and DECORATE ensemble method. Int Arab J Inf Technol 17(5):750–757

    Google Scholar 

  58. Lam WH, Lam WS, Liew KF, Lai AJX, Lee PF (2020) An empirical evaluation on the performance of food service industry in Malaysia with TOPSIS model. J Phys Conf Ser 1706(012172):1–8

    Google Scholar 

  59. Li J, Fang H, Song W (2019) Sustainable supplier selection based on SSCM practices: a rough cloud TOPSIS approach. J Clean Prod 222:606–621

    Article  Google Scholar 

  60. Sindhu S, Nehra V, Luthra S (2017) Investigation of feasibility study of solar farms deployment using hybrid AHP-TOPSIS analysis: case study of India. Renew Sustain Energy Rev 72:496–511

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Lam Weng Hoe .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Siew, L.W., Hoe, L.W., Fun, L.P. (2022). Analysis on the Financial Performance of Companies with TOPSIS Model. In: Alfred, R., Lim, Y. (eds) Proceedings of the 8th International Conference on Computational Science and Technology. Lecture Notes in Electrical Engineering, vol 835. Springer, Singapore. https://doi.org/10.1007/978-981-16-8515-6_8

Download citation

Publish with us

Policies and ethics