ANALYZING THE FINANCIAL PERFORMANCE OF AUTOMOTIVE COMPANIES BEFORE AND AFTER INDUSTRY 4.0: AN APPLICATION IN THE BIST SUSTAINABILITY INDEX

İsmail Fatih Ceyhan; Merve Kara

Article Details

ANALYZING THE FINANCIAL PERFORMANCE OF AUTOMOTIVE COMPANIES BEFORE AND AFTER INDUSTRY 4.0: AN APPLICATION IN THE BIST SUSTAINABILITY INDEX

Authors:

İsmail Fatih Ceyhan | Merve Kara

Publisher:

Burdur Mehmet Akif Ersoy University

Journal:

Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.10 Issue 1, pp.183-205

Document Type:

Article

Publication Date:

3/2023

Document Language:

English

Document ID (Org No.):

2001286729

pISSN:

2149-1658

Keywords:

Abstract:

 Today, the Industry 4.0 revolution, which offers opportunities such as a substantial competitive advantage, increase in production capacity, and cost reduction, is preparing to move institutions to a rapidly changing information age. Therefore, the importance of keeping up with innovations and providing sustainable performance is increasing for businesses in this age. On the other hand, it draws the attention of researchers to whether there is a difference between the financial performances of companies before-after industry 4.0. The study compares the financial performances of automotive companies that have adopted Industry 4.0 methods in the BIST Sustainability Index, before and after Industry 4.0. For this purpose, the companies financial performances were analyzed and compared between 2013-2015 and 2016-2018 with the Gray Relational Analysis method, one of the multi-criteria decision-making techniques. The entropy which is an objective method, was preferred for weighting the criteria. Ten financial ratios were used as criteria in the performance evaluation. As a result, almost all companies increase their financial performance, but a decrease occurs only in one companys financial performance with the transition to Industry 4.0. So it can be stated that the increase in the share of RD expenditures and Industry 4.0 investments will positively affect the financial performance of companies.

 Today, the Industry 4.0 revolution, which offers opportunities such as a substantial competitive advantage, increase in production capacity, and cost reduction, is preparing to move institutions to a rapidly changing information age. Therefore, the importance of keeping up with innovations and providing sustainable performance is increasing for businesses in this age. On the other hand, it draws the attention of researchers to whether there is a difference between the financial performances of companies before-after industry 4.0. The study compares the financial performances of automotive companies that have adopted Industry 4.0 methods in the BIST Sustainability Index, before and after Industry 4.0. For this purpose, the companies financial performances were analyzed and compared between 2013-2015 and 2016-2018 with the Gray Relational Analysis method, one of the multi-criteria decision-making techniques. The entropy which is an objective method, was preferred for weighting the criteria. Ten financial ratios were used as criteria in the performance evaluation. As a result, almost all companies increase their financial performance, but a decrease occurs only in one companys financial performance with the transition to Industry 4.0. So it can be stated that the increase in the share of RD expenditures and Industry 4.0 investments will positively affect the financial performance of companies.

 Today, the Industry 4.0 revolution, which offers opportunities such as a substantial competitive advantage, increase in production capacity, and cost reduction, is preparing to move institutions to a rapidly changing information age. Therefore, the importance of keeping up with innovations and providing sustainable performance is increasing for businesses in this age. On the other hand, it draws the attention of researchers to whether there is a difference between the financial performances of companies before-after industry 4.0. The study compares the financial performances of automotive companies that have adopted Industry 4.0 methods in the BIST Sustainability Index, before and after Industry 4.0. For this purpose, the companies financial performances were analyzed and compared between 2013-2015 and 2016-2018 with the Gray Relational Analysis method, one of the multi-criteria decision-making techniques. The entropy which is an objective method, was preferred for weighting the criteria. Ten financial ratios were used as criteria in the performance evaluation. As a result, almost all companies increase their financial performance, but a decrease occurs only in one companys financial performance with the transition to Industry 4.0. So it can be stated that the increase in the share of RD expenditures and Industry 4.0 investments will positively affect the financial performance of companies.

 Günümüzde çok büyük bir rekabet avantajı, üretim kapasitesi artışı ve maliyet azaltma imkânı sunan Endüstri 4.0 devrimi, kurumları çok hızlı değişen bir bilgi çağına taşımaya hazırlanmaktadır. Dolayısıyla işletmeler için, ortaya çıkan yeniliklere ayak uydurmanın ve sürdürülebilir performans sağlamanın önemi giderek artmaktadır. Diğer yandan firmaların finansal performanslarında endüstri 4.0 öncesi ile sonrası arasında bir fark olup olmadığı araştırmacıların dikkatini çekmektedir. Çalışmada, BİST Sürdürülebilirlik Endeksindeki Endüstri 4.0 metotlarını benimsemiş otomotiv şirketlerinin, Endüstri 4.0 dan önceki ve sonraki finansal performansları karşılaştırılmaktadır. Bu amaçla, bu şirketlerin çok kriterli karar verme tekniklerinden Gri İlişkisel Analiz yöntemi ile 2013-2015 ve 2016-2018 yılları arasındaki finansal performansları analiz edilmiş ve yıllara göre sıralanmıştır. Kriterlerin ağırlıklandırılmasında, objektif bir yöntem olan Entropi yöntemi tercih edilmiştir. Performans değerlendirmesinde kriter olarak on adet finansal oran kullanılmıştır. Sonuçta, Endüstri 4.0a geçişle birlikte şirketlerin çoğunda finansal performans artışı görülmüş, sadece bir firmanın finansal performansında düşüş ortaya çıkmıştır. Böylece, Endüstri 4.0 yatırımlarının ve Ar-ge harcamalarının payının artmasının şirketlerin finansal performansını olumlu yönde etkileyeceği ifade edilebilir.

Article Details

ANALYZING THE FINANCIAL PERFORMANCE OF AUTOMOTIVE COMPANIES BEFORE AND AFTER INDUSTRY 4.0: AN APPLICATION IN THE BIST SUSTAINABILITY INDEX

Authors:

İsmail Fatih Ceyhan | Merve Kara

Publisher:

Burdur Mehmet Akif Ersoy University

Journal:

Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.10 Issue 1, pp.183-205

Document Type:

Article

Publication Date:

3/2023

Document Language:

English

Document ID (Org No.):

2001286729

pISSN:

2149-1658

Corporate Sustainability

Gray Relational Analysis

Financial Analysis

Industry 4.0

Multi-Criteria Decision Making Techniques.

Çok Kriterli Karar Verme Teknikleri

Endüstri 4.0

Finansal Performans

Gri İlişkisel Analiz

Kurumsal Sürdürülebilirlik.

Issues

Article Details

Authors: İsmail Fatih Ceyhan | Merve Kara

Publisher: Burdur Mehmet Akif Ersoy University

Journal: Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.10 Issue 1, pp.183-205

Document Type: Article

Publication Date: 3/2023

Document Language: English

Document ID (Org No.): 2001286729

pISSN: 2149-1658

Issues

Authors:

İsmail Fatih Ceyhan | Merve Kara

Publisher:

Burdur Mehmet Akif Ersoy University

Journal:

Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.10 Issue 1, pp.183-205

Document Type:

Article

Publication Date:

3/2023

Document Language:

English

Document ID (Org No.):

2001286729

pISSN:

2149-1658