Assessing the risk of an investment project using an improved TOPSIS method

ABSTRACT

In this paper, we propose an improved TOPSIS evaluation model based on coordinated development. We improve the TOPSIS evaluation model by taking two indicators as examples to deduce the coordination degree between the indicators, based on spatial analytic geometry. Finally, we use a case study to validate the improved model. The results show that the improved model considers not only the weighted distance from the decision-making scheme to the ideal scheme and the negative ideal scheme, but also the coordination information of the multiple indicators, which has a certain theoretical value for multi-attribute decision-making problems.

KEYWORDS:

• TOPSIS
• improved TOPSIS model
• empirical research
• model specification

JEL CLASSIFICATION:

• D70
• E20

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the Shandong Natural Science Foundation Project [2016ZRB01A9L];Postgraduate Education Innovation Project [SDYY15059];Major projects of soft science in Shandong [2016RZB01045];the State Key Program of National Natural Science of China [71671104].