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Multicriteria decision systems for financial problems

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  • Constantin Zopounidis

    ()

  • Michael Doumpos

    ()

Abstract

Financial decision making is involved with a plethora of important issues for individual and institutional investors, managers of firms and organizations, as well as policy makers. The finance theory has adopted the wealth maximization principle, focusing on normative and descriptive approaches often highlighting multiple factors that drive this single goal. Multicriteria decision systems add important practical contributions in this context, supporting financial decision makers in modeling, analyzing, and evaluating multiple ways of action, under all decision criteria pertinent in a specific decision instance. This paper analyzes the relevance of multicriteria decision systems for financial decisions. A detailed discussion and up-to-date review on two important areas of financial decision support, namely portfolio selection and corporate performance evaluation, are also given to highlight how different multicriteria modeling approaches complement and enhance exiting techniques from the areas of finance and operations research. Copyright Sociedad de Estadística e Investigación Operativa 2013

Suggested Citation

  • Constantin Zopounidis & Michael Doumpos, 2013. "Multicriteria decision systems for financial problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 21(2), pages 241-261, July.
  • Handle: RePEc:spr:topjnl:v:21:y:2013:i:2:p:241-261
    DOI: 10.1007/s11750-013-0279-7
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    File URL: http://hdl.handle.net/10.1007/s11750-013-0279-7
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    Cited by:

    1. Francisco Luna & David Quintana & Sandra García & Pedro Isasi, 2016. "Enhancing Financial Portfolio Robustness with an Objective Based on ϵ-Neighborhoods," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 479-515, May.
    2. Petrillo, Antonella & De Felice, Fabio & García-Melón, Mónica & Pérez-Gladish, Blanca, 2016. "Investing in socially responsible mutual funds: Proposal of non-financial ranking in Italian market," Research in International Business and Finance, Elsevier, vol. 37(C), pages 541-555.
    3. Gawlik, Remigiusz, 2016. "Encompassing the Work-Life Balance into Early Career Decision-Making of Future Employees Through the Analytic Hierarchy Process," MPRA Paper 80260, University Library of Munich, Germany.
    4. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-016-2132-5 is not listed on IDEAS
    5. García-Bernabeu, A. & Pla-Santamaria, D. & Bravo, M. & Pérez-Gladish, B., 2015. "La protección medioambiental como criterio en la selección de inversiones socialmente responsables: una aproximación multicriterio," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15(1).
    6. Aouni, Belaid & Colapinto, Cinzia & La Torre, Davide, 2014. "Financial portfolio management through the goal programming model: Current state-of-the-art," European Journal of Operational Research, Elsevier, vol. 234(2), pages 536-545.
    7. repec:eee:spacre:v:19:y:2016:i:1:p:55-76 is not listed on IDEAS
    8. Calvo, Clara & Ivorra, Carlos & Liern, Vicente, 2015. "Finding socially responsible portfolios close to conventional ones," International Review of Financial Analysis, Elsevier, vol. 40(C), pages 52-63.
    9. repec:spr:annopr:v:247:y:2016:i:2:d:10.1007_s10479-015-1947-9 is not listed on IDEAS
    10. Doumpos, Michael & Niklis, Dimitrios & Zopounidis, Constantin & Andriosopoulos, Kostas, 2015. "Combining accounting data and a structural model for predicting credit ratings: Empirical evidence from European listed firms," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 599-607.

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