Hesitant Fuzzy Linguistic QUALIFLEX Approach For Financial Performance Evaluation Of Listed Company

With the development and expansion of the the current capital market,investors or creditors of listed companies are facing the challenge in investment decision-making.The study of the financial performance of listed companies can be a guidance for investors and become an important basis for decision making.Through the comparison of financial performance,on the one hand,the listed companies can clearly understand that the company itself in the industry competition and be motivated in development.On the other hand,for investors and creditors,the financial performance of listed companies related to its direct interests.In choosing the investment object,the level of financial performance can be an effective factor in understanding their performance and choose whether to invest.Besides,creditors can understand their financial performance through the ability to pay the debt and being a reminder of creditors.At the same time,because of the complexity and uncertainty of the financial performance evaluation of listed companies,it is of practical significance to apply the financial performance evaluation research of listed companies to fuzzy set theory.Therefore,this paper will extend the hesitant fuzzy linguistic multi-criteria decision making problem to financial performance evaluation of listed companies.Based on the existing research,this paper further studies the multi-attribute decision making method of hesitant fuzzy linguistic term set and its application in the financial performance evaluation of listed companies.This paper analyzes the nature of the hesitant fuzzy linguistic term set,and defines a novel cosine similarity measure and distance measure between two hesitant fuzzy linguistic term sets on the basis of a proposed new fuzzy envelope.Then the classical QUALIFLEX approach is extended to hesitant fuzzy linguistic multi-criteria decision making problems.For the case that the attribute weights information is partially known,the maximum deviation method is used to solve the weight vector,and the corresponding decision making method is obtained.Finally,we select some listed companies to evaluate their financial performance to verify the effectiveness and applicability of the proposed method.The specific research contents are summarized as follows:1.This paper studies the financial performance evaluation index system of listed companies,and introduces its basic constituent elements,including the subject,object and index.Through the analysis of its establishment principles and evaluation contents,it is determined that the financial performance of listed companies need to be evaluated from the four aspects of profitability,asset quality,debt risk and business growth.Then some reasonable and effective financial indices are selected to construct a financial performance evaluation index system for listed companies,which is suitable for the method of this paper.2.On the basis of the existing research on hesitant fuzzy linguistic term set,the envelope,similarity measure and distance measure are studied.After analyzing the existing theories,this paper proposes a new fuzzy envelope of hesitant fuzzy linguistic term set.Besides,the cosine similarity measure and distance measure for hesitant fuzzy linguistic term set are proposed on the basis of the new envelope.Taking the hesitancy index of hesitant fuzzy linguistic term set into account,an adjusted cosine similarity measure is proposed.3.Based on the related theories of hesitant fuzzy linguistic term set,the QUALIFLEX method is extended to the multi-attribute decision making problem.To obtain the criteria weights,a linear programming model is constructed based on the adjusted cosine similarity measure.Subsequently,a new cosine similarity based QUALIFLEX approach is proposed and the seven detail steps is introduced The concordance/discordance index,the weighted concordance/discordance index and the comprehensive concordance/discordance index are calculated.Finally,the optimal alternative is determined according to the comprehensive concordance/discordance index.4.This paper takes an investment decision making problem as an example,three listed companies in different industries is selected as the investment alternatives,the decision makers decide which one to choose according to the financial performance level of the listed companies.The results can be a theoretical basis for investors.In addition,the validity and practicability of the method are proved by contrasting with other methods.