Abstract

http://ssrn.com/abstract=1027935
 
 

References (45)



 


 



Rating and Ranking Firms with Fuzzy Expert Systems: The Case of Camuzzi


Stefano Malagoli


Università degli studi di Modena e Reggio Emilia (UNIMORE)

Carlo Alberto Magni


University of Modena and Reggio Emilia - Department of Economics

Giovanni Mastroleo


Università degli Studi della Calabria

Fabio Buttignon


University of Padua - Department of Economics; University of Padua

June 1, 2007

The IUP Journal of Applied Finance, Vol. 15, No. 10, pp. 63-88, November 2009

Abstract:     
In this paper we present a real-life application of a fuzzy expert system aimed at rating and ranking firms. Unlike standard DCF models, it integrates financial, strategic and business determinants and processes both quantitative and qualitative variables. Twenty-one value drivers are defined, concerning the target firm (strategic assets in place and expected financial performance), the acquisition (synergies, quality of management) and the sector (intensity of competition, entry barriers). Their combination via if-then rules leads to the definition of an output represented by a real number in the interval [0,1]. Such a number expresses the valuegenerating power of the target firm inclusive of synergies with the bidder (Strategic Enterprise Value). The system may be used for rating and ranking firms operating in the same sector. A regression analysis using hostile takeovers multiples may be employed to translate the score into price. The real-life case refers to Camuzzi (a natural gas distributor), acquired by Enel, the Italian ex monopolist of electric energy.

Number of Pages in PDF File: 27

Keywords: Corporate finance, firm, rating, ranking, expert system, fuzzy, evaluation

JEL Classification: G34, G30, G31, G12, C88, C63

Accepted Paper Series


Download This Paper

Date posted: November 7, 2007 ; Last revised: November 15, 2009

Suggested Citation

Malagoli, Stefano and Magni, Carlo Alberto and Mastroleo, Giovanni and Buttignon, Fabio, Rating and Ranking Firms with Fuzzy Expert Systems: The Case of Camuzzi (June 1, 2007). The IUP Journal of Applied Finance, Vol. 15, No. 10, pp. 63-88, November 2009. Available at SSRN: http://ssrn.com/abstract=1027935

Contact Information

Stefano Malagoli
Università degli studi di Modena e Reggio Emilia (UNIMORE) ( email )
Viale A. Allegri 9
Modena 42121
Carlo Alberto Magni (Contact Author)
University of Modena and Reggio Emilia - Department of Economics ( email )
Viale Berengario 51
Modena, Modena 41121
Italy
Giovanni Mastroleo
Università degli Studi della Calabria ( email )
Italy
Fabio Buttignon
University of Padua - Department of Economics ( email )
via Del Santo 33
Padova, 35123
Italy
University of Padua ( email )
Via del Santo 26
Padova, Vicenza 3513
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 1,140
Downloads: 282
Download Rank: 60,442
References:  45

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.266 seconds