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An Integrated Group Decision Making Support Model for Corporate Financing Decisions

Author

Listed:
  • Wen-Hsien Tsai

    (National Central University)

  • Ching-Chien Yang

    (Chung Chou University of Science and Technology)

  • Jun-Der Leu

    (National Central University)

  • Ya-Fen Lee

    (National Central University)

  • Chih-Hao Yang

    (National Central University)

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.

Suggested Citation

  • Wen-Hsien Tsai & Ching-Chien Yang & Jun-Der Leu & Ya-Fen Lee & Chih-Hao Yang, 2013. "An Integrated Group Decision Making Support Model for Corporate Financing Decisions," Group Decision and Negotiation, Springer, vol. 22(6), pages 1103-1127, November.
    • Handle: RePEc:spr:grdene:v:22:y:2013:i:6:d:10.1007_s10726-012-9308-4
    DOI: 10.1007/s10726-012-9308-4
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    2. Kheybari, Siamak & Rezaie, Fariba Mahdi & Farazmand, Hadis, 2020. "Analytic network process: An overview of applications," Applied Mathematics and Computation, Elsevier, vol. 367(C).
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