Measuring the Efficiency of Companies in Bist 30 Participation Index Bydata Envelopment Analysis

Abstract

In today’s competitive business environment, measuring and improving efficiency is critical for companiesseeking long-term sustainability and market success. Firms must evaluate whether they utilize their financialresources effectively to generate optimal outputs. Companies must take corrective measures to address theirweaknesses if inefficiencies are identified. Efficiency enhances productivity and competitive advantage byachieving the highest possible output with the least input. This study assesses the financial efficiency of 14companies listed in the BIST Participation 30 index between 2019 and 2023. These companies operate invarious sectors, including chemicals, petroleum rubber and plastic products, transportation and storage, basicmetals, and defense industries. The BIST Participation index includes companies that comply with Islamicfinance principles. This study employs Data Envelopment Analysis (DEA), a widely recognized non-parametric methodology designed to evaluate the relative efficiency of decision-making units (DMUs) byconsidering multiple input and output variables. Three financial indicators were selected as input variables:Total equity, total assets, and total liabilities. The output variables included net profit, return on assets (ROA),and return on equity (ROE). The data for the analysis were obtained from the companies’ official financialstatements and the Public Disclosure Platform (KAP), a platform managed by the Capital Markets Board ofTurkiye (SPK), where companies listed on the Borsa Istanbul (BIST) are required to disclose their financialreports and other relevant information. The results show that five companies were efficient in 2022 and 2023,six were efficient in 2021, only one achieved efficiency in 2020, and five were efficient in 2019. The five mostefficient companies were identified as GESAN, ASELS, MAVI, BIMAS, and SASA based on the averageefficiency scores over the five years. This analysis provides a comprehensive understanding of firm-levelefficiency under Islamic financial principles. It offers investors, managers, and policymakers valuable insightsto enhance strategic financial decision-making and competitiveness in the Islamic capital market.