Evaluation of Financial Failure Risks of Construction Sector Enterprises Using Altman Z-Score and Entropy-EDAS Methods
Chapter from the book: Uygurtürk, H. (ed.) 2025. Empirical Studies in Finance.

Neilan Soylu
Karabük University

Synopsis

This study aims to assess the financial failure risks of companies listed on the BIST Construction index. For this purpose, analyses were conducted using data from 2022 and 2023 for 12 companies included in the index. In the study, the Altman Z-score method was first applied to assess the financial failure risks of the companies. Subsequently, based on the Altman Z-score components (ratios), an analysis was performed using the Entropy-EDAS method to obtain a ranking of the companies according to their riskiness. According to the Altman Z-score analysis results, approximately half of the companies included in the index did not carry the risk of financial failure in both years. According to the results of the Entropy-EDAS approach, ORGE and KUYAS businesses ranked highest among the 12 businesses in 2023, while KUYAS and TURGG businesses ranked highest in 2022, indicating that they were relatively far from the risk of financial failure. Furthermore, when comparing the rankings obtained from the two methods used to assess the risk of financial failure of businesses, a high correlation was found between the results.

How to cite this book

Soylu, N. (2025). Evaluation of Financial Failure Risks of Construction Sector Enterprises Using Altman Z-Score and Entropy-EDAS Methods. In: Uygurtürk, H. (ed.), Empirical Studies in Finance. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub902.c3731

License

Published

October 18, 2025

DOI