An Improved TOPSIS Model Based on Cumulative Prospect Theory: Application to ESG Performance Evaluation of State-Owned Mining Enterprises

The aim of this study is to provide a comprehensive decision-making method that can be applied investment decisions based on the Environmental, Social and Governance (ESG) performance. contributes existing literature by introducing CPT-TOPSIS model, pioneering approach incorporates effect non-rational factors results in uncertain conditions combining cumulative prospect theory (CPT) with classic TOPSIS model. Moreover, conducting an application ESG evaluation five state-owned mining enterprises China, provides evidence effectiveness improvement offered new model comparison TOPSISI (PT-TOPSIS) suggest considers risk preferences probability distortion process, narrows gap between scores, makes performance more realistic.