Corporate profitability analysis: a novel application for paraconsistent logic

Abstract

This study explores the application of paraconsistent annotated evidential logic for analyzing the profitability of companies. We implemented a model that allocated degrees of favorable and contrary evidence to selected profitability ratios, defined using data from sixty-seven food industry companies. The degrees of favorable and contrary evidence assigned to each profitability index were based on which decile they were in. This model was implemented as a dedicated software program that calculates degrees of favorable and contrary evidence for the full set of indices and then provides an overall assessment of evidence in favor of or contradicting each company's profitability. The results produced by the model *

Paraconsistent Method of Prospective Scenarios (PMPS)

“…One can interpret the pair as follows [19]: (0; 0) indicates the total absence of favorable evidence or maximum contrary evidence to p (it translates a logical state called paracompleteness);…”