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Sustainability 2017, 9(3), 375; doi:10.3390/su9030375

Compromise between Short- and Long-Term Financial Sustainability: A Hybrid Model for Supporting R&D Decisions

Department of Banking & Finance, Chinese Culture University (SCE), Taipei 11114, Taiwan
Academic Editors: Xiang Li, Jian Zhou, Hua Ke and Xiangfeng Yang
Received: 16 January 2017 / Revised: 17 February 2017 / Accepted: 22 February 2017 / Published: 4 March 2017
View Full-Text   |   Download PDF [978 KB, uploaded 4 March 2017]   |  

Abstract

The debate of “short-termism” has gained increasing interests from various fields, ranging from management to economics; it mainly concerns the decisions or actions taken by businesses that might yield short-term returns at the cost of long-term value or sustainability. Previous studies have highlighted this dilemma faced by managers, mainly from the pressure of capital markets or short-sighted shareholders who crave for immediate financial outcomes; intelligent decision aids that can compromise between the short- and long-term financial sustainability, based on a company’s policy, are highly needed. Therefore, the aim of this study is to develop a multiple-rule-based hybrid decision model to support management teams on prioritizing new R&D projects, considering the financial prospects in dual timeframes (i.e., short- and long-term) for sustainability. Furthermore, in the presence of business uncertainty and the limited knowledge of managers on new projects, the intuitionistic fuzzy technique is incorporated. A case of selecting new R&D projects for an IC design company is illustrated using the proposed approach, and the financial data from a group of public-listed IC stocks from Taiwan are inducted to form the decision model. The findings not only support the IC design company to select new projects but also provide business insights to facilitate the understandings of this controversial issue in managerial practice. View Full-Text
Keywords: multiple criteria decision-making (MCDM); rough set theory (RST); dominance-based rough set approach (DRSA); intuitionistic fuzzy set (IFS); financial performance (FP); short-termism multiple criteria decision-making (MCDM); rough set theory (RST); dominance-based rough set approach (DRSA); intuitionistic fuzzy set (IFS); financial performance (FP); short-termism
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Shen, K.-Y. Compromise between Short- and Long-Term Financial Sustainability: A Hybrid Model for Supporting R&D Decisions. Sustainability 2017, 9, 375.

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