Abstract
The AHP technique application is usually for determining criteria priorities according to respondents, but no statistical query exists for instance, whether the experts’ views significantly change with respect to some characteristics, the criteria priorities significantly differentiate with each other. This research objective is along with determining the priorities of subcriteria in the evaluation of bank failure/bankruptcy risk, to show generating priority series from experts’ views for each criteria for carrying out statistical tests with respect to expert subgroups, and then produce information for researchers/decision makers. The research utilises the usage of conducting statistical hypothesis testing on generated priority series and CAMELS approach to bank failure. This study investigates and determines the subcriteria priorities of CAMELS dimensions, and uses the data of study Pekkaya & Erol (2016) for statistical tests by generating priority series of CAMELS dimensions. Since no similar academic study, which uses statistical tests and generates priority series in bank failure/bankruptcy literature via similar approach, is observed; this study can be accepted as paving the way of the usage of AHP technique. The obtained priority values of subcriteria with main criteria of CAMELS dimensions can be used to improve the early warning system for bank failure.
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