Application of hierarchical method and fuzzy AHP-TOPSIS method for multi-criteria decision making in financing
Published:
May 11, 2021
Abstract:
Purpose: One way to make more profit in different companies is to choose the right method of financing. While the impact of financial structure on the economic structure is so important that today they believe that economic growth cannot be achieved without an efficient financial sector. The method of financing is financial. At first, in this study, the fuzzy Delphi method (Delphi) has been used in order to identify the factors and criteria of supply.
Research methodology: The absorption of foreign capital has been identified as a method of financing. For this purpose, in this research, AHP hierarchical analysis method is used.
Results: In this article, the application of fuzzy AHP - TOPSIS method for the problem of financing is investigated. The process of managing financial resources is one of the reasons for allocating its technical equipment to various applications in this company.
Limitations: However, the results of our studies show that although a set of known values in this company, the financing process may not adhere strongly to these values. Emphasis on evaluation aspects - changes in various areas that indicate local values may also affect the supply trend.
Contribution: Multi-criteria decision methods are useful in that they provide a basis for analyzing and transforming complex and complex problems into simpler ones; In that framework, the planner can easily evaluate the options with the help of criteria and sub-criteria. Using these methods can help a lot in choosing the best available solution. Other advantages of these methods include flexibility, simplicity of calculations and the possibility of the final ranking of options.
Keywords:
1. Financing
2. Hierarchical method
3. Multi-criteria decision making
4. Fuzzy AHP-TOPSIS
Authors:
How to Cite
Soleimani, E., Dehyadegari, M., & Gerami, H. Z. (2021). Application of hierarchical method and fuzzy AHP-TOPSIS method for multi-criteria decision making in financing. Annals of Management and Organization Research, 1(4), 307–317. https://doi.org/10.35912/amor.v1i4.573
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Issue & Section
Vol. 1 No. 4: May
Articles
References
Abolfathi, F. Hasheminejad. S M, Ebrahimi, S B. (2013). Financing methods in intra-city rail transportation, sixth conference on financing development in Iran. Tehran.
Alam al-Huda, Seyyed Sajjad, Daryabar, Abdullah, Tarighi, Samaneh. (2015). Investigating the relationship between profit quality and capital structure (Case study: non-financial companies listed on the tehran stock exchange). Financial Economics, 8 (27), 1-10.
Ali Aghaei, M. Javan. A., NazlakiArdakani, M. and Mousavi, A. (2009). Study of the effect of earnings management, company size and profitability ratios on capital structure, accounting studies. 25,104-87.
Bahmani,A. (2000). A Study of mudaraba contract and its performance in commercial banks of the country. Magazine: Bank and Economy, 10, 34-38.
Dasineh., M, Ahadi., NooriFardi. (1388). Evaluating the relationship between financing structure and decisions related to investing resources in the assets of companies listed on the Tehran Bourse Exchange. Researcher, 16,18-29.
Dosineh, Mehdi; AhadiSarkani, Seyed Yousef; Nouri Fard, Yadollah. (2009). Assessing the relationship between the financing structure and decisions related to investing resources in the assets of companies listed on the Tehran Stock Exchange. Winter, 16, 18 -29.
Ebadi.RA,Golmohmmadi.T. (2019).Evaluate the relationship between the structure of the economy and capital market financing. Mieaoi. 8 (27), 27-45.
Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217-248
Group of translators of the Covenant of Managers. (2006). Decision-making on outsourcing. Management Journal, 15, 38-41
Jafarzadeh, Morteza and Mina Najjar. (2010). Financing through the issuance of participation bonds; opportunities and threats (case study: plan to renovate and improve the worn-out texture around the holy shrine of HazratReza).
Kurdistani, Gh and Najafi Emran, M. (2008). Study of determinants of capital structure: an experimental test of static balance theory vs. coherent hierarchy theory. Financial Research, 1, 52.
Kurdistani, Gholamreza and Najafi Emran, Mazaher. Investigating the impact of financing methods on future return on stocks. Journal of Accounting Advances, Shiraz University, 2, 75-108.
Liu, Y. C., & Hung, J. H. (2006). Services and the long-term profitability in Taiwan's banks. Global Finance Journal, 17(2), 177-191.?
Mehrani, S. and Rasaeian. (2007). Study of the relationship between profitability ratios and capital structure in Tehran Stock Exchange. Accounting Studies, 81. 10-1.
Mohajerani, M. (2003). Micro credit, the most effective method of financing the needy. Bank and Economy, 40, 140.
Mollanazeri , M, Hejazi, R, Sahraei, M. (2010). Investigating the relationship between financing methods (external resources) and the success and failure of companies listed on the Tehran Stock Exchange. Financial Accounting and Auditing Research, 2(6), 65-86.
Qatmiri, Mohammad Ali, Karim Islam Lobian and Massoud Shirazi. (2006). Investigating the impact of government expenditures and its financing sources on gdp and economic growth: The Case of Iran (1972-1993). Quantitative Economics, 5-36
Razani, B. (2003). Review and introduction of new and effective methods of attracting financial resources in the branches of Tejarat Bank of Lorestan Province Master's thesis (Faculty of Basic Sciences, Azad University, Khorasgan Branch.)
Reza, Shiva (2005) The effect of long-term financing on economic growth and development in Iran. Agricultural Economics and Development, 33-65.
Ruhling, M. (2005). Institutional constraints on the property tax and semi-autonomous municipal tax agencies in peru. Land and Urban Policies for Poverty Reduction, 125.?
Sabet Motlagh Mohammad, Salehi Sedghiani Jamshid, AyaziSeyed Ali, AbediniNaeini Mehdi. (2014). Evaluation and selection of strategic suppliers using the combined method of Analytic Hierarchy Process and Gray Topsis. (11)4, 117-110.
Sharafi ,F and Fatehi,ZM. (2011). The role of branch management in achieving the goals of state-owned banks and related challenges, http://www.banksepah.ir/upload/modules/articles/pdfs/66.pdf.
Taghavi, Mehdi and Zamanian, Alireza. (2009). Evaluation of off-balance sheet financing methods on stock prices and profits of companies listed on the Tehran Stock Exchange. Quarterly Journal of Quantitative Management Studies, 2, 10-1.
Alam al-Huda, Seyyed Sajjad, Daryabar, Abdullah, Tarighi, Samaneh. (2015). Investigating the relationship between profit quality and capital structure (Case study: non-financial companies listed on the tehran stock exchange). Financial Economics, 8 (27), 1-10.
Ali Aghaei, M. Javan. A., NazlakiArdakani, M. and Mousavi, A. (2009). Study of the effect of earnings management, company size and profitability ratios on capital structure, accounting studies. 25,104-87.
Bahmani,A. (2000). A Study of mudaraba contract and its performance in commercial banks of the country. Magazine: Bank and Economy, 10, 34-38.
Dasineh., M, Ahadi., NooriFardi. (1388). Evaluating the relationship between financing structure and decisions related to investing resources in the assets of companies listed on the Tehran Bourse Exchange. Researcher, 16,18-29.
Dosineh, Mehdi; AhadiSarkani, Seyed Yousef; Nouri Fard, Yadollah. (2009). Assessing the relationship between the financing structure and decisions related to investing resources in the assets of companies listed on the Tehran Stock Exchange. Winter, 16, 18 -29.
Ebadi.RA,Golmohmmadi.T. (2019).Evaluate the relationship between the structure of the economy and capital market financing. Mieaoi. 8 (27), 27-45.
Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217-248
Group of translators of the Covenant of Managers. (2006). Decision-making on outsourcing. Management Journal, 15, 38-41
Jafarzadeh, Morteza and Mina Najjar. (2010). Financing through the issuance of participation bonds; opportunities and threats (case study: plan to renovate and improve the worn-out texture around the holy shrine of HazratReza).
Kurdistani, Gh and Najafi Emran, M. (2008). Study of determinants of capital structure: an experimental test of static balance theory vs. coherent hierarchy theory. Financial Research, 1, 52.
Kurdistani, Gholamreza and Najafi Emran, Mazaher. Investigating the impact of financing methods on future return on stocks. Journal of Accounting Advances, Shiraz University, 2, 75-108.
Liu, Y. C., & Hung, J. H. (2006). Services and the long-term profitability in Taiwan's banks. Global Finance Journal, 17(2), 177-191.?
Mehrani, S. and Rasaeian. (2007). Study of the relationship between profitability ratios and capital structure in Tehran Stock Exchange. Accounting Studies, 81. 10-1.
Mohajerani, M. (2003). Micro credit, the most effective method of financing the needy. Bank and Economy, 40, 140.
Mollanazeri , M, Hejazi, R, Sahraei, M. (2010). Investigating the relationship between financing methods (external resources) and the success and failure of companies listed on the Tehran Stock Exchange. Financial Accounting and Auditing Research, 2(6), 65-86.
Qatmiri, Mohammad Ali, Karim Islam Lobian and Massoud Shirazi. (2006). Investigating the impact of government expenditures and its financing sources on gdp and economic growth: The Case of Iran (1972-1993). Quantitative Economics, 5-36
Razani, B. (2003). Review and introduction of new and effective methods of attracting financial resources in the branches of Tejarat Bank of Lorestan Province Master's thesis (Faculty of Basic Sciences, Azad University, Khorasgan Branch.)
Reza, Shiva (2005) The effect of long-term financing on economic growth and development in Iran. Agricultural Economics and Development, 33-65.
Ruhling, M. (2005). Institutional constraints on the property tax and semi-autonomous municipal tax agencies in peru. Land and Urban Policies for Poverty Reduction, 125.?
Sabet Motlagh Mohammad, Salehi Sedghiani Jamshid, AyaziSeyed Ali, AbediniNaeini Mehdi. (2014). Evaluation and selection of strategic suppliers using the combined method of Analytic Hierarchy Process and Gray Topsis. (11)4, 117-110.
Sharafi ,F and Fatehi,ZM. (2011). The role of branch management in achieving the goals of state-owned banks and related challenges, http://www.banksepah.ir/upload/modules/articles/pdfs/66.pdf.
Taghavi, Mehdi and Zamanian, Alireza. (2009). Evaluation of off-balance sheet financing methods on stock prices and profits of companies listed on the Tehran Stock Exchange. Quarterly Journal of Quantitative Management Studies, 2, 10-1.
- Abolfathi, F. Hasheminejad. S M, Ebrahimi, S B. (2013). Financing methods in intra-city rail transportation, sixth conference on financing development in Iran. Tehran.
- Alam al-Huda, Seyyed Sajjad, Daryabar, Abdullah, Tarighi, Samaneh. (2015). Investigating the relationship between profit quality and capital structure (Case study: non-financial companies listed on the tehran stock exchange). Financial Economics, 8 (27), 1-10.
- Ali Aghaei, M. Javan. A., NazlakiArdakani, M. and Mousavi, A. (2009). Study of the effect of earnings management, company size and profitability ratios on capital structure, accounting studies. 25,104-87.
- Bahmani,A. (2000). A Study of mudaraba contract and its performance in commercial banks of the country. Magazine: Bank and Economy, 10, 34-38.
- Dasineh., M, Ahadi., NooriFardi. (1388). Evaluating the relationship between financing structure and decisions related to investing resources in the assets of companies listed on the Tehran Bourse Exchange. Researcher, 16,18-29.
- Dosineh, Mehdi; AhadiSarkani, Seyed Yousef; Nouri Fard, Yadollah. (2009). Assessing the relationship between the financing structure and decisions related to investing resources in the assets of companies listed on the Tehran Stock Exchange. Winter, 16, 18 -29.
- Ebadi.RA,Golmohmmadi.T. (2019).Evaluate the relationship between the structure of the economy and capital market financing. Mieaoi. 8 (27), 27-45.
- Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217-248
- Group of translators of the Covenant of Managers. (2006). Decision-making on outsourcing. Management Journal, 15, 38-41
- Jafarzadeh, Morteza and Mina Najjar. (2010). Financing through the issuance of participation bonds; opportunities and threats (case study: plan to renovate and improve the worn-out texture around the holy shrine of HazratReza).
- Kurdistani, Gh and Najafi Emran, M. (2008). Study of determinants of capital structure: an experimental test of static balance theory vs. coherent hierarchy theory. Financial Research, 1, 52.
- Kurdistani, Gholamreza and Najafi Emran, Mazaher. Investigating the impact of financing methods on future return on stocks. Journal of Accounting Advances, Shiraz University, 2, 75-108.
- Liu, Y. C., & Hung, J. H. (2006). Services and the long-term profitability in Taiwan's banks. Global Finance Journal, 17(2), 177-191.?
- Mehrani, S. and Rasaeian. (2007). Study of the relationship between profitability ratios and capital structure in Tehran Stock Exchange. Accounting Studies, 81. 10-1.
- Mohajerani, M. (2003). Micro credit, the most effective method of financing the needy. Bank and Economy, 40, 140.
- Mollanazeri , M, Hejazi, R, Sahraei, M. (2010). Investigating the relationship between financing methods (external resources) and the success and failure of companies listed on the Tehran Stock Exchange. Financial Accounting and Auditing Research, 2(6), 65-86.
- Qatmiri, Mohammad Ali, Karim Islam Lobian and Massoud Shirazi. (2006). Investigating the impact of government expenditures and its financing sources on gdp and economic growth: The Case of Iran (1972-1993). Quantitative Economics, 5-36
- Razani, B. (2003). Review and introduction of new and effective methods of attracting financial resources in the branches of Tejarat Bank of Lorestan Province Master's thesis (Faculty of Basic Sciences, Azad University, Khorasgan Branch.)
- Reza, Shiva (2005) The effect of long-term financing on economic growth and development in Iran. Agricultural Economics and Development, 33-65.
- Ruhling, M. (2005). Institutional constraints on the property tax and semi-autonomous municipal tax agencies in peru. Land and Urban Policies for Poverty Reduction, 125.?
- Sabet Motlagh Mohammad, Salehi Sedghiani Jamshid, AyaziSeyed Ali, AbediniNaeini Mehdi. (2014). Evaluation and selection of strategic suppliers using the combined method of Analytic Hierarchy Process and Gray Topsis. (11)4, 117-110.
- Sharafi ,F and Fatehi,ZM. (2011). The role of branch management in achieving the goals of state-owned banks and related challenges, http://www.banksepah.ir/upload/modules/articles/pdfs/66.pdf.
- Taghavi, Mehdi and Zamanian, Alireza. (2009). Evaluation of off-balance sheet financing methods on stock prices and profits of companies listed on the Tehran Stock Exchange. Quarterly Journal of Quantitative Management Studies, 2, 10-1.
