Financial modelling with multiple criteria decision making: A systematic literature review

Abstract

Models and methods of multi-criteria decision making/aiding (MCDM/A) work as viable alternatives to deal with the complexity and the multiple objectives that financial decisions can include. This paper presents a study about the state-of-the-art involving the use of MCDM/A for financial decisions by undertaking a systematic literature review (SLR) that seeks to respond to a set of relevant questions on this field. It contributes to the literature by setting out a categorisation of the kinds of problems approached in the reviewed papers and by verifying a set of relevant research questions for which statistical tools are used. Therefore, this paper includes an analysis of the main financial criteria and the MCDM/A methods used for financial decisions; the problematics covered by the papers; and identifying the main authors, journals and financial areas supported by these models. Throughout the paper, other reviews are discussed and literature prior to and after the sub-prime crisis is analysed.

Keywords:

• financial modelling
• finance
• MCDM
• MCDA
• systematic literature review

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This study was financed in part by the Coordenação de Aperfeioamento de Pessoal de Nível Superior – Brazil (CAPES) – Finance Code 001; CNPq and Facepe.