Designing A MCDM Model for Complex Corporate Financing Problems

摘要

Traditional researches analyze the effects of each financing variable on the firm's share market price. Because financing problems in reality are naturally complex with multiple conflicting objectives, Goal Programming (GP) is applied. In this paper, first a simple model and then for complex multi-period problems a MCDM model introduced. The proposed model explains how to satisfy at the highest level the firm's stockholder-oriented goals. Since any financing planning without considering future investment opportunities is just an oversimplification, the model allows to evaluate these opportunities and analyze their effects on the optimal financing solution and goal achievements. Finally, it is aimed to illustrate the formulation process by a numerical example.