The use of fuzzy logic and expert systems for rating and pricing firms: a new perspective on valuation.

This paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance.Firm valuation, fuzzy logic, expert system, acquisition, rating, pricing

The interaction between parents and children as a relevant dimension of child well being. The case of Italy

This paper aims at measuring the functionings of social interaction, a relevant dimension in the description and conceptualisation of child well being by using the capability approach. In this paper we deal with a special dimension of this capability that involves the capability of interaction between parents and child. We propose a fuzzy expert system to measure this capability. To apply the model we use a data set based on a matched data source of ISTAT (Italian National Statistical Office 1998) multipurpose survey on family and on children condition in Italy to recover information on children’s education, the socio-demographic structure of their families, child care provided by relatives and parents according to the type of activities in which the children are involved and Bank of Italy Survey on household income and wealth year 2000 (SHIW00). This is a first step of a more complex system allowing for a richer set of indicators on capabilities in order to measure child well being.

An alternative approach to firms' evaluation: Expert systems and fuzzy logic

Discounted cash flow techniques are the generally accepted methods for valuing firms. Such methods do not provide explicit acknowledgment of the value determinants and overlook their interrelations. This paper proposes a different method of firm valuation based on fuzzy logic and expert systems. It does represent a conceptual transposition of discounted cash flow techniques but, unlike the latter, it takes explicit account of quantitative and qualitative variables and their mutual integration. Financial, strategic and business aspects are considered by focusing on 29 value drivers that axe combined together via if-then rules. The output of the system is a real number in the interval [0, 1], which represents the value-creation power of the firm. To corroborate the model a sensitivity analysis is conducted. The system may be used for rating and ranking firms as well as for assessing the impact of managers' decisions on value creation and as a tool of corporate governance

The Interaction between Parents and Children as a Relevant Dimension of Child Well Being. The Case of Italy

This paper aims at measuring the functionings of social interaction, a relevant dimension in the description and conceptualisation of child well being by using the capability approach. In this paper we deal with a special dimension of this capability that involves the capability of interaction between parents and child. We propose a fuzzy expert system to measure this capability. To apply the model we use a data set based on a matched data source of ISTAT (Italian National Statistical Office 1998) multipurpose survey on family and on children condition in Italy to recover information on children’s education, the socio-demographic structure of their families, child care provided by relatives and parents according to the type of activities in which the children are involved and Bank of Italy Survey on household income and wealth year 2000 (SHIW00). This is a first step of a more complex system allowing for a richer set of indicators on capabilities in order to measure child well being.Child Well Being, Fuzzy Expert System, Capabilities

The use of fuzzy logic and expert systems for rating and pricing firms: a new perspective on valuation

This paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance

The digitalization of sustainability reporting processes: A conceptual framework

Building on the contingency theory, the paper aims to shed light on the contribution provided by technological innovation on sustainability reporting quality. A fuzzy expert system (FES) was developed to evaluate the cumulative effects related to the adoption of digital devices in sustainability reporting practices. The analysis underlined the enabling role covered by Sustainable Enterprise Resources Planning (S-ERP) systems on sustainability reporting processes. In detail, we found that the disclosure of environmental information using technological platforms can lead analysts to a more accurate evaluation

Evaluation and interval approximation of fuzzy quantities

In this paper we present a general framework to face the problem of evaluate fuzzy quantities. A fuzzy quantity is a fuzzy set that may be non normal and/or non convex. This new formulation contains as particular cases the ones proposed by Fortemps and Roubens [7], Yager and Filev [12, 13] and follows a completely different approach. It starts with idea of "interval approximation of a fuzzy number" proposed, e.g., in [4, 8, 9]

The use of fuzzy logic and expert systems for rating and pricing firms: a new perspective on valuation.

This paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance

Rating firms and sensitivity analysis

This paper introduces a model for rating a firm's default risk based on fuzzy logic and expert system and an associated model of sensitivity analysis (SA) for managerial purposes. The rating model automatically replicates the evaluation process of default risk performed by human experts. It makes use of a modular approach based on rules blocks and conditional implications. The SA model investigates the change in the firm's default risk under changes in the model inputs and employs recent results in the engineering literature of Sensitivity Analysis. In particular, it (i) allows the decomposition of the historical variation of default risk, (ii) identifies the most relevant parameters for the risk variation, and (iii) suggests managerial actions to be undertaken for improving the firm's rating

Rating firms and sensitivity analysis

This paper introduces a model for rating a firm's default risk based on fuzzy logic and expert system and an associated model of sensitivity analysis (SA) for managerial purposes. The rating model automatically replicates the evaluation process of default risk performed by human experts. It makes use of a modular approach based on rules blocks and conditional implications. The SA model investigates the change in the firm's default risk under changes in the model inputs and employs recent results in the engineering literature of Sensitivity Analysis. In particular, it (i) allows the decomposition of the historical variation of default risk, (ii) identifies the most relevant parameters for the risk variation, and (iii) suggests managerial actions to be undertaken for improving the firm's rating