Assessment and Integral Indexing of the Main Indicators of Oil and Gas Companies by Circular Convolution

Irina Vygodchikova, Mikhail Gordienko, Natalia Natocheeva, Natalia Rud and Anzhela Namitulina
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Irina Vygodchikova: Department of Differential Equations & Mathematic Economics, National Research Saratov State University, 410012 Saratov, Russia
Mikhail Gordienko: Department of Financial Management, Plekhanov Russian University of Economics, 117997 Moscow, Russia
Natalia Natocheeva: Department of Financial Markets, Plekhanov Russian University of Economics, 117997 Moscow, Russia
Natalia Rud: Department of World Economy and Customs, North-Caucasus Federal University, 357500 Pyatigorsk, Russia
Anzhela Namitulina: Department of Finance, Financial University under the Government of the Russian Federation, 105064 Moscow, Russia

Energies, 2022, vol. 15, issue 3, 1-13

Abstract: In the oil and gas industry, which is the basis of the Russian energy market, a significant and urgent question arises: How to distribute companies according to their investment attractiveness? Accordingly, quantitative indicators are needed. Lacking extensive experience in the practical implementation of fundamental rating tools, work is needed to develop methodologies of weighting coefficients and lists, built on the experience of the “big three” rating agencies. The article proposes an algorithm for forming an integral rating of companies based on financial reporting indicators and the author’s rules of fuzzy logic based on the principle of “circular convolution”, from the best to the slave, deepening the analysis to the center, when all companies are exhausted and places in the rating are distributed. The problem of assessing and integrally indexing the indicators of large companies in leading sectors of the economy (e.g., oil and gas, banks, electricity) is becoming manifest, while it is obvious that there is competition between large companies of the country’s leading industries for state investment resources. The nature of the leading industries is such that it is necessary to assess the quality of the company’s functioning based on the formation of rating groups. Based on the rating, investments are distributed among the companies under consideration. The author has developed a portfolio model that is analogous to the Harry Max Markowitz model, which does not contradict this model but allows consideration of a broader range of risk assessments used in the model (for example, the rating of companies). The optimal portfolio is built, taking into account the resulting index and the initial grouping in the hierarchical data correction mode. The logically sequential method of circular convolution of four important indicators to an integral index and a mathematically substantiated method for optimizing the minimax portfolio presented in the work will allow the investor to develop optimal (from the point of view of the transparency of the apparatus used, mathematical feasibility and time spent on the implementation of the software package) tools for investing and enlarging his capital.

Keywords: integral index; competitive advantage; investments; share distribution; optimization model; minimax; hierarchical analysis; circular convolution (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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