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Chinese Journal of Management Science ›› 2019, Vol. 27 ›› Issue (1): 184-193.doi: 10.16381/j.cnki.issn1003-207x.2019.01.018

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Method of Screening Evaluation Indicators Based on Circle Ill-Condition Index Analysis

CHEN Hong-hai   

  1. School of Finance, Nanjing University of Finance and Economics, Nanjing 210023, China
  • Received:2016-12-31 Revised:2017-05-17 Online:2019-01-20 Published:2019-03-25

Abstract: The existing researches delete the relatively unimportant indicators in few indices (mainly including any pair indicators) with high correlation to prevent the high information overlap from distorting the comprehensive evaluation results, which can improve the information overlap of few indicators but is not available to ensure that of the indices set is not high. In this article, a new method of screening indices with high information overlapping is presented. The indicators of the greatest contribution to the overall overlap of residual indicators are deleted successively until the information overlap of all remaining indicators is not high so far, since an indicator makes greater contribution to the information overlap of the indices set if the decrease of ill-condition index for the indices set is lager when it is removed. Furthermore, the dominated one in any pair of remaining indicators with high correlation is deleted to avoid high information overlap between the individual indicators while the overall information overlap of the indices set is not high. The reduction ratio of ill-condition index for the indices set and the number of deleted indicators are used to illustrate the efficiency of reducing the overall information overlap for the indices set, which tests the relative rationality of the suggested method that is more efficient than the correlation analysis method for reducing the overall information overlap for the indices set. The above findings enrich the theoretical research of the indices screening methods, helpfully complements the comprehensive evaluation method, and facilitates the researches in related fields.

Key words: evaluation indices screening, information overlapping, comprehensive assessment, ill-condition index, coefficient of variance

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