AN EFFECTIVENESS MEASUREMENT OF ISO 500 BUSINESS’ WITH MALMQUIST-TFV INDEX: THE CASE OF AUTOMOTIVE SECTOR

Abstract

In today’s global competitive environment business are carried out various activities in order to incresase their effectiveness. Performance measurement is an important when are determined to business effectiveness. Malmquist total factor productivity calculation is an important method used to determine the success levels of businesses. Various output and input data are used in this method. Accordingly, the effectiveness of the business in the automotive sector, which are among the top 500 companies declared every year by the Istanbul Chamber of Industry (ISO), have been calculated through the Malmquist total factor productivity index. Seven business’ data were used in the study based on from 2014 to 2016 years. Net assets, equity capital and employee numbers were used as an input factors. And also, net sales, pre-tax profit and export data were used as an output factors.