Financial Sustainability of Companies

The idea of the project is to analyze the specifics of the ownership structure of innovative companies, the role and activity of different types of  investors in them; specifics of corporate governance mechanisms and the activities of boards of directors in different types (patterns) of corporate financial architecture of innovative companies.

The new stream of research considers the role of personal characteristics and behavior of CEO in the innovation and investment activities of companies. 

Main objectives:

• Analysis of the motives for choosing the financing policy of innovative companies;
• Identification of specific non-financial factors using textual analysis that allows determining the words and expressions typical for financially stable and unstable innovative companies;
• Studying the relationship between reputation ratings and the financing policy of innovative companies;
• Empirical analysis of the degree of influence of the reputation of the CEO (CEO) and reputation ratings of companies on the choice of sources of financing for innovative companies.

Main results:

• We proved the hypothesis of low propensity to invest in R&D for CEO-founders of a company; 
• We found out that national culture may have non-significant influence on financing decisions about R&D; although, personal culture (of CEO or CEO-founder) is significant;
• On the basis of Russian banks we found out the role of human capital and CEO control in corporate governance; specific motives and behavioural biases of CEOs in innovative firms; specific agency conflicts in innovative companies.