Work

The Use of Fuzzy Logic and Expert Systems for Rating and Pricing Firms: A New Perspective on Valuation

Year: 2005

Type: report

Abstract: This paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance.

Source: Munich Personal RePEc Archive (Ludwig Maximilian University of Munich)

Authors: Stefano Malagoli, Carlo Alberto Magni, Giovanni Mastroleo

Institutions: University of Modena and Reggio Emilia, University of Calabria

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2153783224

Cites: 24

Cited by: 5

Related to: 10