Prioritizing real estate enterprises based on credit risk assessment: an integrated multi-criteria group decision support framework

Zhen-Song Chen (), Jia Zhou (), Chen-Ye Zhu (), Zhu-Jun Wang (), Sheng-Hua Xiong (), Rosa M. Rodríguez (), Luis Martínez () and Mirosław J. Skibniewski ()
Additional contact information
Zhen-Song Chen: Wuhan University
Jia Zhou: Wuhan University
Chen-Ye Zhu: Civil Aviation Flight University of China
Zhu-Jun Wang: Xi’an Jiaotong University
Sheng-Hua Xiong: Civil Aviation Flight University of China
Rosa M. Rodríguez: University of Jaén
Luis Martínez: University of Jaén
Mirosław J. Skibniewski: University of Maryland

Financial Innovation, 2023, vol. 9, issue 1, 1-53

Abstract: Abstract Credit risk assessment involves conducting a fair review and evaluation of an assessed subject’s solvency and creditworthiness. In the context of real estate enterprises, credit risk assessment provides a basis for banks and other financial institutions to choose suitable investment objects. Additionally, it encourages real estate enterprises to abide by market norms and provide reliable information for the standardized management of the real estate industry. However, Chinese real estate companies are hesitant to disclose their actual operating data due to privacy concerns, making subjective evaluation approaches inevitable, occupying important roles in accomplishing Chinese real estate enterprise credit risk assessment tasks. To improve the normative and reliability of credit risk assessment for Chinese real estate enterprises, this study proposes an integrated multi-criteria group decision-making approach. First, a credit risk assessment index for Chinese real estate enterprises is established. Then, the proposed framework combines proportional hesitant fuzzy linguistic term sets and preference ranking organization method for enrichment evaluation II methods. This approach is suitable for processing large amounts of data with high uncertainty, which is often the case in credit risk assessment tasks of Chinese real estate enterprises involving massive subjective evaluation information. Finally, the proposed model is validated through a case study accompanied by sensitivity and comparative analyses to verify its rationality and feasibility. This study contributes to the research on credit assessment for Chinese real estate enterprises and provides a revised paradigm for real estate enterprise credit risk assessment.

Keywords: Real estate enterprise; Credit risk assessment; PROMETHEE II; Best–worst method; Proportional hesitant fuzzy linguistic term sets (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1186/s40854-023-00517-y Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:fininn:v:9:y:2023:i:1:d:10.1186_s40854-023-00517-y

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589

DOI: 10.1186/s40854-023-00517-y

Access Statistics for this article

Financial Innovation is currently edited by J. Leon Zhao and Zongyi

More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().