FINANCING RISK MANAGEMENT AND CONTROL FOR HIGH-TECHNOLOGICAL SMALL AND MEDIUM ENTERPRISES — UNDER NONLINEAR DIFFERENTIAL EQUATION

Ximei Li, Jing Chen, Hadi Oqaibi () and Xiangmei Fan
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Ximei Li: School of Business Administration, Guangdong University of Finance, Guangzhou 510520, P. R. China
Jing Chen: School of Business Administration, Guangdong University of Finance, Guangzhou 510520, P. R. China
Hadi Oqaibi: ��Information Systems Department, Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah, Saudi Arabia
Xiangmei Fan: ��The Key Lab of Technology and Finance, Guangdong University of Finance, Guangzhou 510520, P. R. China

FRACTALS (fractals), 2022, vol. 30, issue 02, 1-12

Abstract: In this paper, a financing decision-making method is proposed based on the nonlinear differential equations (NDEs) to promote the healthy development of high-technological (high-tech) small and medium enterprises (SMEs). An assessment index system for financing risks is established, and the financing decision-making method is proposed based on the backward stochastic differential equation (BSDE). Then, the financing risk is evaluated with analytic hierarchy process (AHP) combined with fuzzy evaluation based on the financing status of Peilin Company. Finally, the corresponding financing decision is proposed based on the BSDE. It is found that the comprehensive score of financing risk of Peilin Company is 63.6124, indicating that the risk is high. The financing decision obtained shows that the current equity fund financing should be 396.24million to achieve the future goal. It is proved that the proposed financing risk evaluation method can assess the financing risks accurately, and the financing decision-making method based on NDE can obtain more appropriate financing decisions through calculation. This study can provide a crucial reference for management and control of financing risk for enterprises.

Keywords: High-Tech Enterprise; Financing Risk Assessment; Fuzzy Evaluation; Backward Stochastic Differential Equation; Financing Decision (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1142/S0218348X22400667

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