Corporate Financial Risk Assessment and Role of Big Data; New Perspective Using Fuzzy Analytic Hierarchy Process

Huaiwen Zhang (), Adnan Khurshid (), Xinyu Wang () and Alina Mirela Băltăţeanu ()
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Huaiwen Zhang: School of Economics (PhD student), Shanghai University, China. Associate Professor, Anyang University, China
Adnan Khurshid: Corresponding Author. School of Economics and Management, Zhejiang Normal University, Jinhua, Zhejiang.
Xinyu Wang: School of Economics and Management, North China University of Technology, Beijing, China.
Alina Mirela Băltăţeanu: Bucharest Academy of Economic Studies (PhD student), Bucharest, Romania

Journal for Economic Forecasting, 2021, issue 2, 181-199

Abstract: Technological progress can help in the systematization of information linked with customer sentiments regarding the enterprise and products. This information can help incorporate decision-making and reduces financial risk. This study puts forward the theory of the impact of big data on corporate financial risk assessment, integrates big data public opinion indicators into the traditional corporate financial risk assessment index. The empirical outcomes are obtained using the Fuzzy Analytic Hierarchy Process. The results show that big data indicators, especially negative sentiment index have a more profound effect on corporate financial risk. In addition, profitability got the highest weightage in our case. A risk assessment model built with big data indicators can effectively correct the original assessment model's shortcomings and improve risk assessment results. Therefore, the financial risk assessment model that incorporates big data indicators shows better performance.

Keywords: Corporate Financial Risk; Big data; Fuzzy Analytic Hierarchy Process; Public Opinion (search for similar items in EconPapers)
JEL-codes: C55 D81 G32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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