Behavioral Corporate Finance in Emerging Capital Markets

The goal of research in 2022 was implementation of the models to study the impact of personal characteristics of top management and boards of directors on the policy of technological and managerial innovations of companies, including the implementation of the principles of sustainable development and reporting on sustainable development, the horizon of decisions and identifying the corrective role of boards of directors.

Research within the framework of the project is based on modern econometric methods of data analysis, which requires the formation of separate databases. Regression analysis of cross-sectional and panel data; correlation analysis; systems of econometric tests to check the stability of the results; the method of nonlinear modeling; the method of events (event study analysis) were used.

A study conducted on a sample of 76 Russian companies from the broad MICEX index for 2013-2019 shows that the effect of short-termism in innovation is strongly pronounced in Russia: a reduction in the personal decision-making horizon of CEOs leads to a decrease in investment in R&D. The positive relationship between the length of the decision-making horizon of CEOs and companies' investments in R&D remains if the largest players in the corporate sector and companies from industries with a high percentage of investments in R&D are excluded from the sample.