A Novel Multi-criteria Decision Making Approach Based on Bipolar Neutrosophic Set for Evaluating Financial Markets in Egypt

Abstract

In the evolving landscape of financial markets, assessing company performance with precision and reliability is crucial for investors and analysts. This paper introduces an innovative framework for evaluating the financial performance of companies listed on the Egyptian Exchange (EGX) by integrating Bipolar Neutrosophic Sets (BNS) with Multi-Criteria Decision-Making (MCDM) methods. The proposed framework utilizes BNS to incorporate the inherent uncertainty and imprecision of financial data, and integrates MCDM methods to provide a comprehensive assessment of multiple performance indicators. Specifically, the evaluation focuses on seven critical criteria: Stock Returns, Volatility, Liquidity, Market Capitalization, Earnings Growth, Revenue Growth, and Analyst Ratings. By utilizing Bipolar Neutrosophic Weighted Average (BNWA) operators and similarity measures, the study effectively ranks companies through a nuanced analysis of these criteria. The results highlight the effectiveness of the proposed approach in providing a robust and accurate financial performance evaluation framework tailored to the unique dynamics of the Egyptian market. The study demonstrates that the hybrid model not only accommodates variations in criteria weights but also offers valuable insights for investment decisions in emerging markets. The approach exhibits resilience and adaptability, providing a more informed and reliable basis for evaluating financial performance. This research contributes to the advancement of financial performance assessment methodologies by showcasing the potential of combining BNS with MCDM techniques. The research also emphasizes the framework's practical applications and suggests future research directions for refining the model and exploring its use in diverse financial contexts.