Multicriteria decision aid/analysis in finance

Abstract

Over the past decades the complexity of financial decisions has increased rapidly, thus highlighting the importance of developing and implementing sophisticated and efficient quantitative analysis techniques for supporting and aiding financialdecision making. Multicriteria decision aid (MCDA), an advanced branch of operations research, provides financial decision makers and analysts with a wide range of methodologies well-suited for the complexity of modern financial decision making. The aim of this chapter is to provide an in-depth presentation of the contributions of MCDA in finance focusing on the methods used, applications, computation, and directions for future research.