CLASSIFICATION OF SELECTED FOOD INDUSTRY COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE - THE IMPACT OF NORMALIZATION PROCEDURES

Competent assessment of the financial condition of stock companies becomes very important because trustworthy and timely information is expected by investors. Thus, it is necessary to use methods that streamline the analysis of the stock market. Taxonomic synthetic measures belong to such methods. One of the stages of the multivariate analysis is the data normalization. The choice of the normalization method is one of the most crucial steps for the researchers because it could influence the results of the analysis. In the present study, the author uses a synthetic taxonomic measure TMAI with selected normalization methods to compare the condition of 13 food industry companies listed on the Warsaw Stock Exchange and create for them the rankings for the years 2013 and 2014. Comparing the results of the individual rankings, it can be stated that the selected normalization algorithm impacts the result of the obtained classification.