Application of the MARS Method to the Evaluation of Grant Applications and Non-Returnable Instruments of Start-Up Business Financing

• Autorzy: Ewa Roszkowska , Paweł Konopka
• Języki publikacji: EN

Abstrakty

EN

This paper discusses the issue of evaluation of grant and loan proposals submitted by start-up businesses. A multi-criteria model for the evaluation of proposals for start-up business financing is proposed, based on the MARS method and taking into account three criteria: professional experience of the person planning to start a business, evaluation of the business plan, and evaluation of credit history of the applicant. Modelling of the expert's preferences was based on verbal comparisons of decision variants from the reference set consisting of solutions close to the ideal solution. The usefulness of the model has been verified using data from loan applications submitted to the Business Friendly Fund, operating in one of cooperative banks in the Podlaskie voivodeship.(original abstract)

Słowa kluczowe

EN

Business activity; Credit; Credit risk modelling; Loans

PL

Działalność gospodarcza; Kredyt; Modelowanie ryzyka kredytowego; Pożyczki

• Czasopismo: Multiple Criteria Decision Making / University of Economics in Katowice
• Rocznik: 2016
• Tom: 11
• Strony: 153--167

Twórcy

autor

Ewa Roszkowska

• Uniwersytet w Białymstoku

autor

Paweł Konopka

• Uniwersytet w Białymstoku

Bibliografia

• Altman E.I. (1968), Financial Ratios Discriminant Analysis and the Prediction of Corporate Bankruptcy, Journal of Finance, 23, 589-609.
• Altman E.I., Sabato G. (2007), Modelling Credit Risk for SMEs: Evidence from the U.S. Market, Abacus, 43(3), 332-357.
• Altman E.I., Sabato G., Wilson N. (2010), The Value of Non-financial Information in Small and Medium-sized Enterprise Risk Management, The Journal of Credit Risk, 6(2), 1-33.
• Bana e Costa C., Vansnick J.-C. (1999), The MACBETH Approach: Basic Ideas, Software, and an Application [in:] N. Meskens and M. Roubens (eds.), Advances in Decision Analysis, Springer, 131-157.
• Beck T., Demirguc-Kunt A., Martinez Peria M.S. (2011), Bank Financing for SMEs: Evidence across Countries and Bank Ownership Types, Journal of Financial Services Research, 39(1-2), 35-54.
• Chen C.T., Hwang C.L. (1992), Fuzzy Multiple Attribute Decision Making Methods and Applications, Springer-Verlag, Berlin.
• Cleary S. (1999), The Relationship between Firm Investment and Financial Status, Journal of Finance, Vol. 54(2), 673-692.
• Figueira J., Greco S., Słowiński R. (2008), Identifying the "Most Representative" Value Function among All Compatible Value Functions in the GRIP Method, Proceedings of 68th Meeting of the European Working Group on Multiple Criteria Decision Aiding, Chania.
• Figueira J., Greco S., Ehrgott M. (eds.) (2005), Multiple Criteria Decision Analysis: State of the Art Surveys, Springer, New York, 609-637.
• Figueira J.R., Greco S., Słowiński R. (2009), Building a Set of Additive Value Functions Representing a Reference Preorder and Intensities of Preference: GRIP Method, European Journal of Operational Research, 195(2), 460-486.
• Greco S., Mousseau V., Słowiński R. (2008), Ordinal Regression Revisited: Multiple Criteria Ranking Using a Set of Additive Value Functions, European Journal of Operational Research, 191, 416-436.
• Górecka D., Roszkowska E., Wachowicz T. (2014), MARS - A Hybrid of ZAPROS and MACBETH for Verbal Evaluation of the Negotiation Template [in:] Group Decision and Negotiation 2014 (GDN 2014), Proceedings of the Joint International Conference of the INFORMS GDN Section and the EURO Working Group on DSS, eds. P. Zaraté, G. Camilleri, D. Kamissoko, F. Amblard, 24-31.
• Górecka D., Roszkowska E., Wachowicz T. (2016), The MARS Approach in the Verbal and Holistic Evaluation of the Negotiation Template, Group Decision and Negotiation, DOI: 10.1007/s 10726-016-9475-92016.
• Herrera F., Alonso S., Chiclana F., Herrera-Viedma E. (2009), Computing with Words in Decision Making: Foundations, Trends and Prospects, Fuzzy Optim. Decis. Making, 8, 337-364.
• Herrera F., Herrera-Viedma E. (2000), Linguistic Decision Analysis: Steps for Solving Decision Problems under Linguistic Information, Fuzzy Sets and Systems, 115, 67-82.
• Jacquet-Lagrèze E., Siskos Y. (1982), Assessing a Set of Additive Utility Functions for Multicriteria Decision Making. The UTA Method, European Journal of Operational Research, 10 (2), 151-164.
• Jacquet-Lagrèze E., Siskos Y. (2001), Preference Disaggregation: 20 Years of MCDA Experience, European Journal of Operational Research, 130 (2), 233-245.
• Jagielska I., Matthews C., Whitfort T. (1999), An Investigation into the Application of Neural Networks, Fuzzy Logic, Genetic Algorithms, and Rough Sets to Automated Knowledge Acquisition for Classification Problems, Neurocomputing, Vol. 24, 37-54.
• Konopka P. (2013), Zastosowanie wnioskowania rozmytego do oceny ryzyka kredytowego przedsiębiorstw, Studia Ekonomiczne Uniwersytetu Ekonomicznego w Katowicach nr 163, Modelowanie preferencji a ryzyko \'13, 285-299.
• Larichev O.I., Moshkovich H.M. (1997), Verbal Decision Analysis for Unstructured Problems, Kluwer Academic Publishers, Boston.
• Larichev O.I., Moshkovich H.M. (1995), ZAPROS-LM - A Method and System for Ordering Multiattribute Alternatives, European Journal of Operational Research, 82(3), 503-521.
• Medina R.S., Cueto M.J.V. (2013), Modeling Credit Risk: An Application of the Rough Set Methodology, International Journal od Banking and Finance, Vol. 10, 34-56.
• Nemery P., Ishizaka A., Camargo M., Morel L. (2012), Enriching Descriptive Information in Ranking and Sorting Problems with Visualizations Techniques, Journal of Modelling in Management, 7(2), 130-147.
• Pawlak Z. (1982), Rough Sets, Int. J. Computer and Information Sci., 11, 341-356.
• Peters J. (1990), A Cognitive Computational Model of Risk Hypothesis Generation, Journal of Accounting Research, 28, 83-109.
• Raport o stanie sektora małych i średnich przedsiębiorstw w Polsce w latach 2012-2013 (2014), PARP, Warszawa.
• Roy B. (1996), Multicriteria Methodology for Decision Aiding, Kluwer Academic Publishers, Netherlands.
• Roszkowska E., Wachowicz T. (2015), Holistic Evaluation of the Negotiation Template - Comparing MARS and GRIP Approaches [in:] B. Kamiński, G.E. Kersten, P. Szufel, M. Jakubczyk, T. Wachowicz (eds.), The 15th International Conference on Group Decision and Negotiation Letters, Warsaw School of Economics Press, 139-148.
• De Servigny A., Renault O. (2004), Measuring and Managing Credit Risk, McGraw-Hill, New York.
• Siskos Y., Grigoroudis E., Matsatsinis N.F. (2005), UTA Methods [in:] J. Figueira, S. Greco, M. Ehrgott (eds.), Multiple Criteria Decision Analysis: State of the Art Surveys, Springer, New York, 297-334.
• Thomas L.C., Edelman D.B., Crook J.N. (2002), Credit Scoring and Its Applications Monographs on Mathematical Modeling and Computation, SIAM (Society for Industrial and Applied Mathematics), Philadelphia.
• Trzaskalik T. (red.) (2014), Wielokryterialne wspomaganie decyzji. Metody i zastosowania, Polskie Wydawnictwo Ekonomiczne, 126-152.
• (www 1) http://www.m-macbeth.com/en/downloads.html (access: 1.02.2016).
• (www 2) Annual Report on European SMEs 2014/2015, http://ec.europa.eu/growth/smes/businessfriendly- environment/performance-review/index_en.htm (access: 1.02.2016).
• (www 3) Closing the Credit Gap for Formal and Informal Micro, Small, and Medium Enterprises, World Bank, http://www.worldbank.org/en/topic/financialsector/brief/smes-finance (access: 1.02.2016).