This paper studies the problem of neutrosophic portfolios of financial assets as part of the modern portfolio theory. Neutrosophic portfolios comprise those categories of portfolios made up of financial assets for which the neutrosophic return, risk and covariance can be determined and which provide concomitant information regarding the probability of achieving the neutrosophic return, both at each financial asset and portfolio level and also information on the probability of manifestation of the neutrosophic risk. Neutrosophic portfolios are characterized by two fundamental performance indicators, namely: the neutrosophic portfolio return and the neutrosophic portfolio risk. Neutrosophic portfolio return is dependent on the weight of the financial assets in the total value of the portfolio but also on the specific neutrosophic return of each financial asset category that enters into the portfolio structure. The neutrosophic portfolio risk is dependent on the weight of the financial assets that enter the portfolio structure but also on the individual risk of each financial asset. Within this scientific paper was studied the minimum neutrosophic risk at the portfolio level, respectively, to establish what should be the weight that the financial assets must hold in the total value of the portfolio so that the risk is minimum. These financial assets weights, after calculations, were found to be dependent on the individual risk of each financial asset but also on the covariance between two financial assets that enter into the portfolio structure. The problem of the minimum risk that characterizes the neutrosophic portfolios is of interest for the financial market investors. Thus, the neutrosophic portfolios provide complete information about the probabilities of achieving the neutrosophic portfolio return but also of risk manifestation probability. In this context, the innovative character of the paper is determined by the use of the neutrosophic triangular fuzzy numbers and by the specific concepts of financial assets, in order to substantiating the decisions on the financial markets.
This paper develops a Mamdani fuzzy logic system (FLS) that has stochastic fuzzy input variables designed to identify cash-flow deficits in bank lending policies. These deficits do not cover the available cash-flow (CFA) resulting from the company's operating activity. Thus, due to these deficits, solutions must be identified to avoid companies' financial difficulties. The novelty of this paper lies in its using stochastic fuzzy variables, or those categories of variables that are defined by fuzzy sets, characterized by normally distributed density functions specific to random variables, and characterized by fuzzy membership functions. The variation intervals of the stochastic fuzzy variables allow identification of the probabilistic risk situations to which the company is exposed during the crediting period using the Mamdani-type fuzzy logic system. The mechanism of implementing the fuzzy logic system is based on two stages. The first is based on the determination of the cash-flow requirements resulting from loan reimbursement and interest rates. This stage has the role of determining the need for financial resources to cover the liabilities. The second stage is based on the identification of the stochastic fuzzy variables which have a role in influencing the cash flow deficits and the probability values estimation of these variables taking into account probability calculations. Based on these probabilistic values, using the Mamdani fuzzy logic system, estimations are computed for the available cash-flow (the output variable). The estimated values for CFA are then used to detect probability risk situations in which the company will not have enough resources to cover its liabilities to financial creditors. All the FLS calculations refer to future time periods. Testing and simulating the fuzzy controller confirms its functionality.
This paper studies the problem of tangible assets acquisition within the company by proposing a new hybrid model that uses linear programming and fuzzy numbers. Regarding linear programming, two methods were implemented in the model, namely: the graphical method and the primal simplex algorithm. This hybrid model is proposed for solving investment decision problems, based on decision variables, objective function coefficients, and a matrix of constraints, all of them presented in the form of triangular fuzzy numbers. Solving the primal simplex algorithm using fuzzy numbers and coefficients, allowed the results of the linear programming problem to also be in the form of fuzzy variables. The fuzzy variables compared to the crisp variables allow the determination of optimal intervals for which the objective function has values depending on the fuzzy variables. The major advantage of this model is that the results are presented as value ranges that intervene in the decision-making process. Thus, the company’s decision makers can select any of the result values as they satisfy two basic requirements namely: minimizing/maximizing the objective function and satisfying the basic requirements regarding the constraints resulting from the company’s activity. The paper is accompanied by a practical example.
The purpose of this paper was to model, with the help of neutrosophic fuzzy numbers, the optimal financial asset portfolios, offering additional information to those investing in the capital market. The optimal neutrosophic portfolios are those categories of portfolios consisting of two or more financial assets, modeled using neutrosophic triangular numbers, that allow for the determination of financial performance indicators, respectively the neutrosophic average, the neutrosophic risk, for each financial asset, and the neutrosophic covariance as well as the determination of the portfolio return, respectively of the portfolio risk. There are two essential conditions established by rational investors on the capital market to obtain an optimal financial assets portfolio, respectively by fixing the financial return at the estimated level as well as minimizing the risk of the financial assets neutrosophic portfolio. These conditions allowed us to compute the financial assets’ share in the total value of the neutrosophic portfolios, for which the financial return reaches the level set by investors and the financial risk has the minimum value. In financial terms, the financial assets’ share answers the legitimate question of rational investors in the capital market regarding the amount of money they must invest in compliance with the optimal conditions regarding the neutrosophic return and risk.
The current challenges of a circular economy exert a high pressure on manufacturing companies that generate waste to track and implement policies to reduce them and eliminate the toxicity of residues. Hence, the purpose of this study is to analyze the waste management information disclosure linked to the financial performance of companies and test the moderating effect of internal and external variables. The average waste management information disclosure index shows a poor disclosure score for the analyzed period, however, the waste disclosure index after reaching a minimum threshold in 2019 recorded an encouraging increase at the end of 2021. Applying the fixed effects model, ordinary least squares, and two-stage least squares method, the results revealed a positive and statistically significant relationship between management information disclosure and the return on assets, while for the current ratio the connection has been invalidated. A statistically significant influence of the environmental-sensitive industry status, board size, and productivity on the moderating variables was found for the return on assets, while for current ratio, there was none. As for the alternative metrics of financial performance, the results showed that a higher degree of management information disclosure will increase the return on equity and earnings per share, while in the case of liquidity, the results are not conclusive.
This paper aims to model the covariance of financial assets using neutrosophic fuzzy numbers. Two main concepts are discussed and used, namely the neutrosophic covariance of the financial assets and the independent neutrosophic portfolios. In terms of methodology, a three-step approach is proposed with the purpose of identifying the independent neutrosophic portfolio return, the independent neutrosophic portfolio risk and the structure of the independent neutrosophic portfolio. For this purpose, neutrosophic fuzzy theory is chosen for this type of approach as it allows a proper modeling of the financial performance indicators by taking into account the probabilities of their achievement. This action is possible even in the situation in which linguistic variables are used for better characterizing the values of the recorded data. Numerical examples are provided in each stage of the methodology description for a better understanding of the proposed approach. The results of the study can be used to substantiate the decisions made by the capital market investors.
The paper aims to develop a MAMDANI fuzzy controller for detecting the financial sustainability risk of the assets owned by the company. This type of risk indicates when an asset no longer produces economic benefits to the company, or the benefits are small enough to no longer justify the asset maintaining in working order. The proposed fuzzy controller has as input variables the asset operating expenses and the variation of this category of expenses from one analysis period to another. The controller's objective function is to keep operating costs at their initial state and thus reducing the financial sustainability risk. The controller's output variable is represented by the economic benefits variation, considered to be an essential component in the financial sustainability risk analysis. The obtained results were interpreted taking into account the objective function of the controller as well as the evolution of the input variables. Two simulations for fuzzy controllers were made, with the mention that the variation ranges for the input variables were delimited. In practice, fuzzy controllers can be generated according to company policies to keep under control the expense categories that accompany the asset exploitation.
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