Abstract
Assessing a company’s value is an important leverage for decision-making. Indeed, all decisions made within a company are generally aimed at maximizing the company’s value. In accounting, almost all models for assessing the value of a company are related to the amount of cash the company is able to generate. As a result, maximizing the value of a firm is usually about maximizing cash flow. However, beyond the usual accounting models, several recent initiatives have highlighted the key role of managing all assets, and not only the ones considered by the general accountability, in decision making and cash generation. Unfortunately, these methods are currently limited to conceptual and qualitative proposals that do not lead to a real decision support system thus far. This paper proposes a first step of formalization aiming at providing tools for these asset-oriented decision support approaches. The contribution is a Causal Loop Diagram to Support Decision-Making in order to maximize the value of companies. Based on a dedicated literature review, we design an asset-based causal loop model that formalizes the qualitative results of the literature review. We then develop an instantiation on an illustrative case via simulation in order to verify the relevance of the proposal and to show how such a model can be used in practice for decision making. This will support next research to develop an asset-based decision support system to maximize value of companies.
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Ben Taleb, R., Lauras, M., Dahan, M., Montarnal, A., Miclo, R. (2023). An Asset-Based Causal Loop Model to Improve Corporate Value. In: Liu, S., Zaraté, P., Kamissoko, D., Linden, I., Papathanasiou, J. (eds) Decision Support Systems XIII. Decision Support Systems in An Uncertain World: The Contribution of Digital Twins . ICDSST 2023. Lecture Notes in Business Information Processing, vol 474. Springer, Cham. https://doi.org/10.1007/978-3-031-32534-2_3
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