The Ordered Weighted Average Sector Liquid Return Index: A Method for Determining Financial Recovery from Sectoral Debt

Linares-Mustarós, S; Farreras-Noguer, MÀ; Ferrer-Comalat, JC; Merigó, JM

The Ordered Weighted Average Sector Liquid Return Index: A Method for Determining Financial Recovery from Sectoral Debt

Linares-Mustarós, S Farreras-Noguer, MÀ Ferrer-Comalat, JC Merigó, JM

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Publisher:: MDPI
Publication Type:: Journal Article
Citation:: Mathematics, 2023, 11, (23)
Issue Date:: 2023-12-01

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Field	Value	Language
dc.contributor.author	Linares-Mustarós, S
dc.contributor.author	Farreras-Noguer, MÀ
dc.contributor.author	Ferrer-Comalat, JC
dc.contributor.author	Merigó, JM
dc.date.accessioned	2024-03-08T01:08:33Z
dc.date.available	2024-03-08T01:08:33Z
dc.date.issued	2023-12-01
dc.identifier.citation	Mathematics, 2023, 11, (23)
dc.identifier.issn	2227-7390
dc.identifier.issn	2227-7390
dc.identifier.uri	http://hdl.handle.net/10453/176332
dc.description.abstract	The primary aim of this article is to demonstrate that using the average of ratios as a representative value for measuring the health of a sector does not constitute a valid procedure. After mathematically demonstrating this objective, the article will then focus on introducing a new index for estimating the potential debt return value for a sector or group of companies. Next, the article details the start of the process for creating a new index to improve investors’ understanding of the risk associated with a sector or a group of companies meeting short-term obligations based on assigned probabilities of future sales. Given that said value is intended to represent an indicator of expected liquid solvency, its construction will take treasury tensions into account. An Ordered Weighted Average type of aggregation function is used to aggregate the magnitudes in this scenario. Consequently, the second objective of the present work is the creation of this index, which provides an initial estimate of how much money can be recovered from a sector’s debt.
dc.language	English
dc.publisher	MDPI
dc.relation.ispartof	Mathematics
dc.relation.isbasedon	10.3390/math11234839
dc.rights	info:eu-repo/semantics/openAccess
dc.subject.classification	49 Mathematical sciences
dc.title	The Ordered Weighted Average Sector Liquid Return Index: A Method for Determining Financial Recovery from Sectoral Debt
dc.type	Journal Article
utslib.citation.volume	11
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology/School of Computer Science
utslib.copyright.status	open_access	*
dc.date.updated	2024-03-08T01:08:32Z
pubs.issue	23
pubs.publication-status	Published
pubs.volume	11
utslib.citation.issue	23

Abstract:

The primary aim of this article is to demonstrate that using the average of ratios as a representative value for measuring the health of a sector does not constitute a valid procedure. After mathematically demonstrating this objective, the article will then focus on introducing a new index for estimating the potential debt return value for a sector or group of companies. Next, the article details the start of the process for creating a new index to improve investors’ understanding of the risk associated with a sector or a group of companies meeting short-term obligations based on assigned probabilities of future sales. Given that said value is intended to represent an indicator of expected liquid solvency, its construction will take treasury tensions into account. An Ordered Weighted Average type of aggregation function is used to aggregate the magnitudes in this scenario. Consequently, the second objective of the present work is the creation of this index, which provides an initial estimate of how much money can be recovered from a sector’s debt.

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http://hdl.handle.net/10453/176332