Comparative Performance Evaluation Under Uncertainty.
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In this article CCPR, a multidimensional framework for previous comparative performance evaluation is proposed, which is elaborated and illustrated through a real-life case. A particular feature of the approach is that it takes account of and corrects for the influence of risks, which are beyond the control of the decision maker. Here risk is seen as a multidimensional measure; it is expressed by means of sensitivities to unexpected changes of a multitude of risk factors. Furthermore, the approach corrects for differences in characteristics between the firms that are being compared. Some characteristics are fixed and thus uncontrollable for the decision maker, whereas others may be changed and controlled by the decision maker. The approach also answers whether the changes in firm characteristics made by management have been appropriate or not.