Credit Evaluation of Accepted Companies in Tehran Stock Exchange Using Topsis-Fuzzy Technique

Abstract

The lack of having a proper tool for evaluating companies’ ability in paying debts is a reason which creates problem for managing credit risk. This study introduces Topsis technique for evaluating the risk of not paying debts and credit ranking of manufacturing companies in Tehran Stock Exchange. Results showed that using Topsis technique can remove extant shortcomings in ranking industry of Iran which has fallen behind its counterparts such as Malaysia, India, and Pakistan. One advantage of this technique for increasing information asymmetry of investors, creditors and efficiency level of capital market of Iran is an important part of economic sections. Performing Topsis technique assisted determining companies with the highest scores in paying debts in due time, identifying the rank of each company regarding calculated score and their ranking.