Abstract
The financial risk not only affects the development of the company itself, but also affects the economic development of the whole society; therefore, the financial risk assessment of company is an important part. At present, numerous methods of financial risk assessment have been researched by scholars. However, most of the extant methods neither integrated fuzzy sets with quantitative analysis, nor took into account the historical data of the past few years. To settle these defects, this paper proposes a novel financial risk assessment model for companies based on heterogeneous multiple-criteria decision-making (MCDM) and historical data. Subjective and objective indexes are comprehensively taken into consideration in the financial risk assessment index system of the model, which combines fuzzy theory with quantitative data analysis. Moreover, the assessment information obtained from historical financial information of company, credit rating agency and decision makers, including crisp numbers, triangular fuzzy numbers and neutrosophic numbers. Furthermore, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method is used to determine the ranking order of companies according to their financial risk. Finally, an empirical study of financial risk assessment for companies is conducted, and the results of comparative analysis and sensitivity analysis suggest that the proposed model can effectively and reliably obtain the company with the lowest financial risk.
Highlights
Financial risk involves a combination of different methods, models and approaches to reduce the likelihood of a threat and the extent of losses [1]
In order to deal with the ranking order of companies according to their financial risk based on historical data and heterogeneous multiple-criteria decision-making (MCDM), a systematic approach need to be employed in the proposed model
In order to settle these issues based on the above discussion, we (1) establish a novel financial risk index system combining fuzzy theory with quantitative analysis, (2) consider various types of information including crisp numbers, triangular fuzzy numbers and neutrosophic numbers, (3) utilize BWM method to calculate the subjective weight of financial risk criteria, (4) utilize TOPSIS method to manage heterogeneous information and obtain the ranking order of companies according to their financial risk
Summary
Financial risk involves a combination of different methods, models and approaches to reduce the likelihood of a threat and the extent of losses [1]. Financial risk assessment model based on utilizing heterogeneous information and aggregated historical data. The financial risk assessment is conducive to the risk control and healthy development of pharmaceutical companies. The original financial data and related information can be collected from the website http:// www.qianzhan.com or credit rating agency, and the subjective information can be obtained from supervisors of company through questionnaire surveys. The raw data on the operation and technology of the three companies from 2010 to 2016, the original evaluation information of credit rating, contractual capacity of partner and financial risk control system were collected, as supporting information; see S1 Raw Data
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