Presenting an Appropriate Pattern to Determine Attractive Companies for Investment (Case Study: Registered Companies in Tehran Stock Exchange and Active in Chemical Industries

Document Type : Research Paper


1 Associate Prof., Faculty of Management, Economy and Social Sciences, Shiraz University, Shiraz, Iran

2 MSc in Industrial Management, Shiraz University, Shiraz, Iran


The purpose of this study was proposing a suitable pattern for evaluating and assessing companies. To reach this important goal, the fuzzy Delphi method (FDM was employed. After the evaluation pattern was created, the fuzzy analytic hierarchy process (FAHP) was used in order to find the weight of all selected factors, and the significance of each of evaluation factor was determined. Next, companies registered in Tehran Stock Exchange that are active in the chemical industries were examined and ranked separately in three financial years using two different techniques: VIKOR and TOPSIS. In order to determine the efficiency and accuracy of the model, three investment portfolios that included shares of the 4 companies ranked highest in each financial year were created. The performance of each investment portfolio was assessed and evaluated in a two months period using the Sortino ratio (SR) and compared with the chemical industry performance during the same period. The results reveal that the proposed pattern does provide investors with high level of accuracy.


Main Subjects

Aghaei, M.A. & Mokhtareyan, O. (2004). Investigating the effective factors on investors’ decision-making in Tehran Stock Exchange. Journal of the Accounting and Auditing Review, 3(36): 3-25. (in Persian)
Abzari, M., Samadi, S., Izadi Nia, N. & Dehghan Pour Vahid, M. (2008). Evaluation of Base Metals Companies in Tehran Stock Exchange (TSE) Using EVA Model and its relation with Profit accounting criteria. Journal of Financial Research, 10(26): 3-20. (in Persian)
Ahmadpour, A., Akbarpour Shirazi, M. & Razavi Amiri, Z. (2009). The use of multiple attribute decision making in selecting stock (Tehran Stock Exchange). Quarterly Journal of Securities Exchange, 2(5): 5-38. (in Persian)
Anvari Rostami, A.A., Hoseynian, Sh. & Rezaei Asl, M. (2012). Financial Ranking of Firms Listed in Tehran Stock Exchange Corporations Using MADM and Mixed Methods. Journal of Financial Research, 14(1): 31-54. (in Persian)
Azar, A. & Faraji, H. (2002). Fuzzy Management Science. Tehran: Ejtema Publications. (in Persian)
Centeral Bank of the Islamic Republic of Iran (2013). Retrieved November 14, 2013 on the World Wide Web: (in Persian)
Cheng, J. H., Lee, C. M. and Tang, C. H. (2009). An application of fuzzy Delphi and fuzzy AHP on evaluating wafer supplier in semiconductor industry. WSEAS Transactions on Information Science and Applications, Vol. 6(5), pp. 756-767.
Dalkey, N. & Helmer, O. (1963). An experimental application of the Delphi method to the use of experts. Management science, 9(3), pp. 458-467.
Davari, M.R., Abzari, M. & Mahdavi, M. (2011). Investigating the Factors Affecting the Fundamental Analysis of stocks on Isfahan Regional Exchanges. Economic Journal, 11(3,4): 7-30. (in Persian)
Eslami Bidgoli, G.R. & Talangi, A. (1999). Goal programming model of optimal portfolio selection. Journal of Financial Research, 4(2): 50-71. (in Persian)
Fazlzade, A.R., Ranjpour, R. & Touhidi, R. (2012). The investigation of the ability of Single-Index Sharp and DEA models for choosing efficient portfolio in Tehran Stock Exchange. Quarterly Journal of Securities Exchange, 5(18): 39-59. (in Persian)
Foster, G. (1986). Financial Statement Analysis. New Jersey: Prentice-Hall International.
Ghazi Nouri, S. & Tabatabaeyan, H. (2002). Sensitivity analysis of multi-criteria decision problems than the kind of techniques used in a case study. Journal of Knowledge Management, (56): 129-141. (in Persian)
Hejabi, R. (2007). Investigate the methodologies of stock analysis and evaluation by focusing on the P/E Ratio. Bank va Eghtesad, (88): 65-68. (in Persian)
Heydari, H. & Mollabahrami, A. (2010). Portfolio Optimization Using Multivariate GARCH Models: Evidence from Tehran Stock Exchange. Journal of Financial Research, 12(30): 35-56. (in Persian)
Liu, P. and Wang, M. (2011). “An extended VIKOR method for multiple attribute group decision making based on generalized interval-valued trapezoidal fuzzy numbers”. Scientific Research and Essays, Vol. 6(4). pp. 766-776. doi: 10.5897
Mirgafori, H., Rajabipour Maibodi, A. & Farid, A. (2009). Application of Fuzzy AHP in prioritizing factors affecting the choice of stock exchange. Journal of Development and Capital, 3(1): 111-130. (in Persian)
Moradzade Fard, M., Mosazade, A. & Moshashaei, M. (2011). Provide a New Model in the Ranking and Corporate Financial Assessment (Basic Metals Industry Case Study in Tehran Stock Exchange). Journal of the Accounting and Auditing Review, 18(66): 41-52. (in Persian)
Nazemi, S.A., Kazemi, M. & Khosravi, A.H. (2010). Prioritizing the Success’s Key factors in TQM to Reducing the Operating Pressure by Fuzzy AHP. Strategic Management Thought, (2), 183-210. (in Persian)
Opricovic, S. & Tzeng, G.H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2): 445-455.
Pakdin Amiri, M., Pakdin Amiri, M. & Pakdin Amiri, A.R. (2008). Prioritize Effective Financial Factors on Price Stock in Tehran Stock Exchange with Using TOPSIS Method. Journal of Financial Research, 10(26): 61-76. (in Persian)
Poornima, S. and Sudhamathi, R. K. (2013). Performance Analysis of Growth Oriented Equity Diversified Mutual Fund Schemes Using Sortino Ratio. Asia Pacific Journal of Research (APJR), Vol. 1(8). pp. 27-35.
Quah, T. S. (2007). DJIA stock selection assisted by neural network. Expert Systems with Applications, Vol. 35(1), pp. 50-58.
Rahnamaye Roudposhti, F. & Soroushyar, A. (2013). Comparative Assessment of Economic and Accounting Performance Measures Ability in Explaining Value of Companies Listed in Tehran Stock Exchange. Journal of Financial Research, 15(1): 29-50. (in Persian)
Rayens, M.K. & Hahn, E.J. (2000). Building consensus using the policy Delphi method. Policy, politics, & nursing practice, 1(4): 308-315.
Roshangarzade, A. & Ramazan Ahmadi, M. (2011). Investigating of Investment Funds Performance Based on Post Modern Portfolio Theory-Based Measures and the Relationship between their Rankings with the Criteria of Modern Portfolio. Financial Accounting Research, (1): 143-160. (in Persian)
Shaneyan, A., Saadinejad, S. & Dadashzade, M. (2004). Application of Multi Criteria Decision Models (MCDM) in the selection of an appropriate strategy for IT projects. Modirsaz, (15): 102-116. (in Persian)
Striteska, M. (2012). Key Features of Strategic Performance Management Systems in Manufacturing Companies. Procedia - Social and Behavioral Sciences, (58): 1103-1110.
Sun, C.C. (2010). A performance evaluation model by integrating fuzzy AHP and fuzzy TOPSIS methods. Expert Systems with Applications, (37): 7745-7754.
Taherkhani, M. (2007). Application of TOPSIS Technique in Prioritizing the Position of Establishment of Agricultural Alterant Industry in Rural Areas. Economic Research, (3), 59-73. (in Persian)
Vyas, K.A. & Raval, V.H. (2013). Agreement in Stock Selection by Following Fundamental and Technical Analysis on Nifty Stocks. August 30, Available at SSRN: or