An Integrated Group Decision Making Support Model for Corporate Financing Decisions

Wen Hsien Tsai, Ching Chien Yang, Jun Der Leu, Ya Fen Lee, Chih Hao Yang

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

The essential goal of corporate finance is to maximize corporate value while reducing a firm's financial risks. Corporate financing decision is a kind of multi-criteria based group decision making that embodies major approaches to handle qualitative criteria and quantitative limitations. However, in literature related to financing decision making, very little research uses decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) methods to consider the impact and dependency of its factors, or uses Goal programming (GP) to find the satisfactory financing decision under the related financial constraints. This study proposes an integrated group decision making support (GDMS) model to assist corporate financing group decision makers (DMs) in obtaining a satisfactory group solution. ANP, DEMATEL and GP are combined in this GDMS model. By using this model, the group DMs can systemically structure a multi-criteria network framework and derive priority weights of those criteria, and then deal with the quantitative financial constraints for a satisfactory group solution. An illustrative case is demonstrated for the effectiveness and practicability of this GDMS model.

Original languageEnglish
Pages (from-to)1103-1127
Number of pages25
JournalGroup Decision and Negotiation
Volume22
Issue number6
DOIs
StatePublished - Nov 2013

Keywords

  • Analytic network process(ANP)
  • Decision making trial and evaluation laboratory (DEMATEL)
  • Goal programming (GP)
  • Group decision making support (GDMS)

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