Prioritization of the financing method using the combined AHP-TOPSIS approach in Refah chain stores of Tehran province

Group: Commerce

Dissertation to receive a master's degree

Treatment: Financial Management

Abstract

One of the ways to earn more profit in different companies is to choose the right financing method. The attitude towards the financial markets has caused some to consider it only the gains and losses arising from the price fluctuations of financial assets. While the impact of the financial structure on the economic structure is so important that today they believe that economic growth cannot be achieved without having an efficient financial sector. The main purpose of this research is to rank the criteria for choosing financing methods and choosing the best financing method. Initially, in this research, the fuzzy Delphi method was used to identify supply factors and criteria. The results of this section showed that it was determined that the factors, efficiency, cost, sustainability, operationality, justice and transparency were the most important criteria for choosing the financing method, and also forming cooperative companies, receiving facilities, issuing partnership bonds, creating investment companies, being in the stock market, creating a plan as a shareholder, and finally attracting foreign capital were identified as financing methods. For this purpose, the hierarchical analysis method is used in this research. The sample size of this research is 30 experts in the field of chain store financing. The results of this research showed that among the factors, efficiency with weight (0.351), cost with weight (0.230), sustainability with weight (0.140), operationality with weight (0.136), justice with weight (0.079) and transparency with weight (0.064) respectively have the highest and lowest weight in the hierarchical analysis. Also, among the financing methods, forming cooperative companies (0.93), receiving weighted facilities (0.87), issuing partnership bonds with weight (0.72), creating investment companies (0.60), participating in the stock market (0.33), creating a plan as a shareholder (0.22), and finally attracting foreign capital (0.00001) have had the highest and lowest priority among the financing methods, respectively.

Key Keywords

Financing, chain store, hierarchical analysis

Chapter 1

Research overview

1- Introduction

Companies have access to various financial resources to implement profitable investment projects, settle overdue debts, increase working capital and pay dividends to shareholders. These sources include cash from operational activities and asset sales (as internal sources of financing), borrowing from bank loans, issuance of partnership bonds, and issuance of new shares (as external sources of financing). The ability of companies to determine the appropriate financial resources and make correct decisions in this regard is one of the main factors of the company's success. The most important goal that the management should pay attention to when choosing the financing method is to select sources that minimize the financing costs and its effects on the return and risk of the company. The appropriate combination of financing sources is associated with features such as low capital cost and higher rate of return. 1-2-Statement of the problem Iran's economy is facing two major problems of poverty and unemployment, and the government's efforts alone have not been effective so far. Thus, while unemployment should be eliminated, unemployment should not be allowed to occur in the future. Providing financial resources both for daily needs and solving daily problems of the household and for investment and increasing production is a very important necessity. The main point here is that it is not possible to meet these needs easily and quickly. In such a situation, it is necessary to use micro financing methods to solve the aforementioned problems as soon as possible (Mahajerani, 2012). The impact of government spending and its financing sources on GDP and economic growth is one of the most important issues in economic discussions and analyzes (Qatmiri et al., 2015). Meanwhile, financing and its methods have been one of the most important challenges in the provision of resources for public and private centers in Iran, and various methods of financing and its impact on the country's economy, especially chain companies, are questions that have always been raised in this field. In general, the main goal of companies and institutions Profitability is gaining more profit and then increasing the wealth of shareholders and the company's stock price. One of the ways to gain more profit is to choose the appropriate financing method (Taqavi and Zamanian, 2018).The attitude towards the financial markets has caused some to consider it only the gains and losses arising from the price fluctuations of financial assets. While the impact of the financial structure on the economic structure is so important that today they believe that economic growth cannot be achieved without having an efficient financial sector (Reza, 2014). When companies need new financial resources, they can obtain the desired funds either by borrowing or by transferring a part of the company's ownership to obtain the required funds. In the meantime, the need to consider the cost of different financing sources and the effects that each of these sources have on operational efficiency and risk has always been considered (Taqavi and Zamanian, 2018). Companies are faced with two sources of internal financing and external financing in financing decisions. Internal financial resources include cash flows from operating activities, sale of assets and accumulated profits, and external sources include funds acquired through the financial market, such as issuing bonds, issuing new shares, and receiving financial facilities from the bank (Kordestani and Najafi Omran, 2019). In order to examine the methods of financing in chain stores, the appropriate criteria should be evaluated first to identify its strengths and weaknesses. For this purpose, we will first determine the factors within the organization that are effective in attracting resources, then we will determine the indicators to distinguish each of these factors from each other and prioritize them, which will be used for this purpose in the opinion of experts and experts in the field of financing in stores. The method used in this research is Analytical Hierarchy Process (AHP). In this research, an attempt is made to investigate more closely the methods of financing through the private sector for financing in stores by using the combined use of the hierarchical analysis method (AHP) and TOPSIS. In this regard, the favorable and effective activity of these stores can have important effects on the growth of various economic sectors and the increase of the quantitative and qualitative level of production. In the organizations and financial systems of each country, the analysis of these societies with various purposes such as stock evaluation, profitability, performance evaluation, efficiency and so on. It takes place, while the experience of the recent financial crisis and the destructive effects caused by the transfer of the crisis from the monetary sector to the real sector of the economy has revealed the need to pay more attention to the management of financial resources and capital in the activities of financial institutions. The primary source of financial institutions, including stores, is the deposits placed by private, government, and corporate customers in these stores with different types for different purposes. According to this case, the importance of financial resources for stores can be stated. On the other hand, organizations and financial institutions can achieve their goals when they have the ability to attract these resources. Today, in all the organizations of our country that deal with money, we are facing various challenges. Challenges including the embargo of resources and consumables. Nevertheless, it seems that in this situation, one of the methods that can help to improve the financial structure of the stores is to examine the financing methods in order to choose the best method. The above contents confirm the necessity of research. 1-4- Research objectives

- Identifying methods of attracting financial resources in chain stores

- Prioritizing methods of attracting financial resources based on importance in chain stores

1-5- Research questions

- What are the methods of attracting financial resources in chain stores?

- Ranking methods of attracting financial resources in chain stores using What is the AHP TOPSIS method?

1-6- Research method

The current research can be considered as applied research based on the purpose. Applied research using the cognitive background and information provided through basic research to meet human needs and improve and optimize tools, methods, objects and models in the development of welfare and comfort and the improvement of human living standards (Hafiznia 1382). Also, this research can be considered a part of descriptive research.