Equity financing risk assessment based on PLTS-ER approach in marine ranching from the ecological and circular economy perspectives

Xiaole Wan (), Zhengwei Teng (), Zhen Zhang (), Xiangtong Liu () and Zhuoqian Du ()
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Xiaole Wan: Ocean University of China
Zhengwei Teng: Ocean University of China
Zhen Zhang: The Chinese University of Hong Kong
Xiangtong Liu: Dalian University of Technology
Zhuoqian Du: Harbin Institute of Technology (Shenzhen)

Annals of Operations Research, 2024, vol. 342, issue 1, No 26, 875-920

Abstract: Abstract Under the background of circular economy, sustainable development is no longer a slogan but an action. Many countries gradually attach importance to promoting green development and realization of sustainable development. However, small and medium-sized enterprises (SMEs), as the main force, may face financing risks. Thus, the risk control of equity financing has become a vital part of sustainable business management, and enterprises urgently need to effectively assess the risk of equity financing. To assess the risk in a quantitative way, we firstly adopt the Delphi method to construct an index system for financing risk, further extending the judgement dimension and establishing a risk assessment model of marine ranching equity financing. Next, the risk assessment model of marine ranching equity financing based on the PLTS-ER approach is established. Among them, fuzzy qualitative expert evaluation information is expressed in the form of probability by the probabilistic linguistic term sets (PLTS) method, which weakens the interference of subjective factors and calculates the basic probabilistic assignment (BPA) function. Furthermore, evidential reasoning (ER) method is applied to consider experts’ evaluation information processed by PLTS method, finalized with a risk evaluation model. In addition, sensitivity analysis and comparative analysis are carried out in this paper, which further proves the applicability and effectiveness of the indicator system and PLTS-ER method in establishing the risk assessment model of marine ranching equity financing. The research conclusion is of great significance to the marine ranching listed enterprises to evaluate the risks arising from equity financing, and then help them carry out sustainable business management.

Keywords: Circular economy; Equity financing risk; PLTS-ER approach; Marine ranching; Sustainable resources management (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10479-023-05222-8

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