The downside risk of project portfolios: The impact of capital investment projects and the value of project efficiency and project risk management programmes

Paquin, Jean-Paul; Gauthier, Céline; Morin, Pierre-Paul

doi:10.1016/j.ijproman.2016.07.009

Cited by 39 publications

(25 citation statements)

References 19 publications

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“…Moreover, the quality and variety of materials and goods used in a project [73,74], number of active labor force and salaries [75][76][77] and experience and scientific levels of employees in the project [78,79] are amongst other effective measures of project performance. Risks and operational risks, in particular, are also important indicators that many researchers have taken into account [23,63,80]. In addition, research and development (R & D) and related costs are identified as influential parameters in improving project performance [81,82].…”

Section: Literature Reviewmentioning

confidence: 99%

A Novel Approach for Evaluation of Projects Using an Interval–Valued Fuzzy Additive Ratio Assessment (ARAS) Method: A Case Study of Oil and Gas Well Drilling Projects

et al. 2018

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Abstract:The beginning of the 21st-century resulted in a more developed multi-attribute decisionmaking (MADM) tool and inspired new application areas that have resulted in discoveries in sustainable construction and building life cycle analysis. Construction and civil engineering stand for the central axis of a body consisting of a multidisciplinary (multi-dimensional) world with ties to disciplines constituting the surface, and with the disciplines, as a consequence, tied to each other. When dealing with multi-attribute decision-making problems generally multiple solutions exist, especially when there is a large number of attributes, and the concept of Pareto-optimality is inefficient. The symmetry and structural regularity are essential concepts in many natural and man-made objects and play a crucial role in the design, engineering, and development of the world. The complexity and risks inherent in projects along with different effective indicators for success and failure may contribute to the difficulties in performance evaluation. In such situations, increasing the importance of uncertainty is observed. This paper proposes a novel integrated tool to find a balance between sustainable development, environmental impact and human well-being, i.e., to find symmetry axe with respect to goals, risks, and constraints (attributes) to cope with the complicated problems. The concept of "optimal solution" as the maximum degree of implemented goals (attributes) is very important. The model is built using the most relevant variables cited in the reviewed project literature and integrates two methods: the Step-Wise Weight Assessment Ratio Analysis (SWARA) method and a novel interval-valued fuzzy extension of the Additive Ratio Assessment (ARAS) method. This model was used to solve real case study of oil and gas well drilling projects evaluation. Despite the importance of oil and gas well drilling projects, there is lack of literature that describes and evaluates performance in this field projects. On the other hand, no structured assessment methodology has been presented for these types of projects. Given the limited research on performance evaluation in oil & gas well-drilling projects, the research identifies a set of performance criteria and proposes an evaluation model using fuzzy Delphi method. An illustrative example shows that the proposed method is a useful and alternative decision-making method.

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Section: Literature Reviewmentioning

confidence: 99%

A Novel Approach for Evaluation of Projects Using an Interval–Valued Fuzzy Additive Ratio Assessment (ARAS) Method: A Case Study of Oil and Gas Well Drilling Projects

et al. 2018

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“…Researches use different tools to estimate the return of investment such as CAPM (Carter Muller and Ward, 2017), technical analysis (Lee et al, 2011), portfolio risk assessment (Paquin et al, 2016). According to Gitman and Joehnk (2008), the decision of any investor depends on numbers of criteria and believes.…”

Section: Financial Information and Investment Decision-makingmentioning

confidence: 99%

Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics

Alshamy¹

2019

TJSSR

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The current study aimed to investigate the factors affecting investment decision making. Moreover, the moderating effects of age, gender, and financial information were also tested. The study utilized a quantitative research design for that the data was collected using a structured questionnaire. The questionnaire was sent to 570 individuals out of that 374 questionnaires were returned however 372 of the questionnaires were found to be useable. The study framework had 6 constructs namely heuristics, financial information, corporate governance, risk aversion, and experience were independent variables while investment decision making was dependent variable while age, gender and financial education were moderating variables. All the latent construct were measured using multi items based on 5 point Likert scales from 1 strongly disagree to 5 strongly disagree. The results found the Heuristics, Risk Aversion, Financial Information, Corporate Governance and Experience to be significant factors affecting the investment decision making. Moreover, the moderating effect of gender was found to be significant in the relationship of (financial information, corporate governance, and experience) and investment decision making. The moderating effect of age was found to be significant in the relationship of (Heuristics, Corporate Governance, and Experience) and investment decision making while the moderating role of financial education was found to be significant in the relationship of (financial information, corporte governance and experience) and investment decision making.

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“…Theoretically, it is much more realistic than the mean-variance approach, since the portfolio managers are in fact only concerned with the left-side of the return distribution. Paquin et al (2016) investigated this downside risk, and its impact on the expected profitability of a firm, and Sefair et al (2016) used semi-variance as a risk measure in their optimisation in the oil and gas industry.…”

Section: Downside Riskmentioning

confidence: 99%

The Impact Made on Project Portfolio Optimisation by the Selection of Various Risk Measures

Yousefi

Yakhchali

Šaparauskas

et al. 2018

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This study addresses the effect of selecting an appropriate risk measure and the impact of this choice on the efficient frontier of the project portfolio of an organisation. The appropriate choice of a firm's project portfolio has a great impact on the organisational success. Each portfolio manager selects the best projects with different criteria and consistent with firm's strategic objectives. We used the Markowitz efficient frontier method to select the best projects of the organisation. The choice of proper measures impacts on this decision and can change the organisation's portfolio. The standard deviation was applied, and the relevant optimisation was made for this purpose. Then, the semi-standard deviation was used to differentiate between favourable and unfavourable opportunities. Afterwards, Value at Risk and Expected Shortfall were applied as appropriate risk measures to make a better estimate of the tail risks. All these risk measures were used to select the best possible projects. Managers should select the appropriate risk measures according to their objectives, estimation of their project distribution, and characteristics of the projects. This research studied the best measures consistent with construction projects and the effect of changes in these measures.

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The downside risk of project portfolios: The impact of capital investment projects and the value of project efficiency and project risk management programmes

Cited by 39 publications

References 19 publications

A Novel Approach for Evaluation of Projects Using an Interval–Valued Fuzzy Additive Ratio Assessment (ARAS) Method: A Case Study of Oil and Gas Well Drilling Projects

A Novel Approach for Evaluation of Projects Using an Interval–Valued Fuzzy Additive Ratio Assessment (ARAS) Method: A Case Study of Oil and Gas Well Drilling Projects

Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics

The Impact Made on Project Portfolio Optimisation by the Selection of Various Risk Measures

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