A Comparative Performance Evaluation on Bipolar Risks in Emerging Capital Markets Using Fuzzy AHP-TOPSIS and VIKOR Approaches

Hasan Dincer, Umit Hacioglu


The financial risks and volatility in capital markets were intensified significantly similar to the financial situation in the last quarter of 2008. Financial risks had also transmitted into a global recession resulting in sharp slowdowns in financial and economic activities for emerging economies. The progress of economic recovery has been also stalling its effects on the E7 economies. On the one hand, financial stress and boundaries in capital markets transmitted to emerging economies from advanced economies. On the other hand, the conflict situation in the Middle East and Syria has been a challenging issue for peace and stability in the E7 Economies. In the literature, the simultaneous effect of financial risks and conflict risks on capital markets has not been sufficiently examined yet. In this study, it is aimed to illustrate the linkage between the financial stress and conflict risk affecting financial instruments in capital markets within a theoretical frame. The FUZZY TOPSIS method has been also conducted to demonstrate the possible ranks of the E7 economies based on alternative capital markets’ performance evaluation.


DOI: http://dx.doi.org/10.5755/j01.ee.26.2.3591


Financial Risk; Conflict; Financial Stress; Fuzzy; TOPSIS

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Print ISSN: 1392-2785
Online ISSN: 2029-5839