Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study
Multi-criteria analysis is a decision-making and efficiency assessment tool for application in both the private and public sectors. Its application is preceded by the selection of suitable indicators and a homogenous set of variants, as well as suitable methods based on the nature of the input data....
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MDPI AG
2021-02-01
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| Series: | Algorithms |
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| Online Access: | https://www.mdpi.com/1999-4893/14/2/64 |
| _version_ | 1797395992587272192 |
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| author | Roman Vavrek Jiří Bečica Viera Papcunová Petra Gundová Jana Mitríková |
| author_facet | Roman Vavrek Jiří Bečica Viera Papcunová Petra Gundová Jana Mitríková |
| author_sort | Roman Vavrek |
| collection | DOAJ |
| description | Multi-criteria analysis is a decision-making and efficiency assessment tool for application in both the private and public sectors. Its application is preceded by the selection of suitable indicators and a homogenous set of variants, as well as suitable methods based on the nature of the input data. The goal of the submitted research is to highlight the importance of selecting suitable indicators using a case study assessment of the financial health of a municipality—more precisely, the efficiency of management of this municipality. Four key indicators, thirty-two homogenous subjects, and one multi-criteria analysis method were identified in this study based on the theoretical foundations of the specific issue. These elements were processed into a total of 14 variants depending on the number of assessed indicators. Then, these results were subjected to statistical verification alongside verification using the Jaccard index. Based on the acquired results, we highlight the need for correct and expert identification of the relevant sets of alternatives (the criteria matrix) and expert discussion, which should precede the selection of the assessed indicators and objectify this selection process as much as possible. Assessment based on a low number of indicators was shown to be insufficient, highly variable, and diverse, and these differences were partially eliminated as the number of assessed indicators increased. |
| first_indexed | 2024-03-09T00:43:51Z |
| format | Article |
| id | doaj.art-8f19bd280a9942bdb49f61f7f932599b |
| institution | Directory Open Access Journal |
| issn | 1999-4893 |
| language | English |
| last_indexed | 2024-03-09T00:43:51Z |
| publishDate | 2021-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Algorithms |
| spelling | doaj.art-8f19bd280a9942bdb49f61f7f932599b2023-12-11T17:38:42ZengMDPI AGAlgorithms1999-48932021-02-011426410.3390/a14020064Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case StudyRoman Vavrek0Jiří Bečica1Viera Papcunová2Petra Gundová3Jana Mitríková4Department of Public Economics, Faculty of Economics, VŠB—Technical University of Ostrava, Sokolská třída 33, 70200 Ostrava, Czech RepublicDepartment of Public Economics, Faculty of Economics, VŠB—Technical University of Ostrava, Sokolská třída 33, 70200 Ostrava, Czech RepublicFaculty of Natural Sciences, Institute of Economics and Management, Constantine the Philosopher University in Nitra, Trieda Andreja Hlinku 1, 94974 Nitra, SlovakiaDepartment of Corporate Economics and Management, Faculty of Economics, Matej Bel University in Banská Bystrica, Tajovského 10, 97590 Banská Bystrica, SlovakiaDepartment of Tourism and Hotel Management, Faculty of Management, University of Prešov, Konštantínova 16, 08001 Prešov, SlovakiaMulti-criteria analysis is a decision-making and efficiency assessment tool for application in both the private and public sectors. Its application is preceded by the selection of suitable indicators and a homogenous set of variants, as well as suitable methods based on the nature of the input data. The goal of the submitted research is to highlight the importance of selecting suitable indicators using a case study assessment of the financial health of a municipality—more precisely, the efficiency of management of this municipality. Four key indicators, thirty-two homogenous subjects, and one multi-criteria analysis method were identified in this study based on the theoretical foundations of the specific issue. These elements were processed into a total of 14 variants depending on the number of assessed indicators. Then, these results were subjected to statistical verification alongside verification using the Jaccard index. Based on the acquired results, we highlight the need for correct and expert identification of the relevant sets of alternatives (the criteria matrix) and expert discussion, which should precede the selection of the assessed indicators and objectify this selection process as much as possible. Assessment based on a low number of indicators was shown to be insufficient, highly variable, and diverse, and these differences were partially eliminated as the number of assessed indicators increased.https://www.mdpi.com/1999-4893/14/2/64multi-criteria analysisTOPSISnumber of indicatorsmunicipalitiesfinancial analysisCzechia |
| spellingShingle | Roman Vavrek Jiří Bečica Viera Papcunová Petra Gundová Jana Mitríková Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study Algorithms multi-criteria analysis TOPSIS number of indicators municipalities financial analysis Czechia |
| title | Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study |
| title_full | Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study |
| title_fullStr | Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study |
| title_full_unstemmed | Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study |
| title_short | Number of Financial Indicators as a Factor of Multi-Criteria Analysis via the TOPSIS Technique: A Municipal Case Study |
| title_sort | number of financial indicators as a factor of multi criteria analysis via the topsis technique a municipal case study |
| topic | multi-criteria analysis TOPSIS number of indicators municipalities financial analysis Czechia |
| url | https://www.mdpi.com/1999-4893/14/2/64 |
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