Optimal Financial Resource Allocation Using Multiobjective Decision Making Model

Abstract

The management of each industry must strive to meet multiple financial objectives, including capital structure, dividend policy, and earnings growth. The paper proposes an approach to analyze how financial resources should be allocated optimally using a multi-objective decision-making model. As part of the study, Al Rajhi banks' financial statements are used as a case study. All of the data is drawn from the banks' financial statements. Overall, the study's results show that all objectives have been achieved. This model enables banking and other industries to formulate strategies for dealing with various financial situations. The study's results are calculated and verified using LINGO 18.0 x64 software. Hence, the proposed model can determine financial decisions and develop strategies for dealing with various economic frameworks.