Financial risk assessment of six regions in China under the TOPSIS model based on a coupling perspective

Autor: Yizhe Ding, Keyu Chen
Rok vydání: 2022
Zdroj: BCP Business & Management. 23:94-102
ISSN: 2692-6156
DOI: 10.54691/bcpbm.v23i.1340
Popis: As China's economy enters a new normal, the economy gradually changes from high speed to high quality, and the task of resolving various types of risks in each region becomes more arduous, while the prevention and control of regional financial risks will certainly become one of the severe challenges faced under the new economic normal. Based on the parallel data of six regions in China, this paper combines EWM subjective weights and AHP objective weights to construct EWM-AHP coupling weights. It also adopts the distance between ideal point superiority and inferiority solution (TOPSIS) ranking method to quantify the relative relationship between the sample and the evaluation criteria and establishes a differentiated financial risk indicator model for the six regions. The results show that the financial risk is lower in regions with a weaker economic base and lower level of financial development. Financial risk is higher in regions with a higher degree of financial openness. The integrated EWM-AHP and TOPSIS models can effectively reduce the financial risks in the development process of the six regions and improve the smoothness of economic operation, which has a particular application value. The results show that the financial risk is higher in regions with more backward economic development, and the financial risk index is lower in regions with sound capital market development.
Databáze: OpenAIRE