Scientific journal NRU ITMO
Series "Economics and Environmental Management"
Registration certificate ЭЛ № ФС 77 – 55411 от 17.09.2013
registered by the Federal Inspectorate Service for Communication, Information Technologies and Communication Media

September 2018 (published: 27.09.2018)

Number 3(34)

Home > Issue > How does corporate risk management mitigate the effects of investment myopia

UDC 338.242

How does corporate risk management mitigate the effects of investment myopia

Makarova V.A. , Kalchenko A.V. , Patsey L.A.

Within the framework of the present work on the example of the metallurgical industry of Russia, the phenomenon of short-termism as a factor preventing the creation of a long-term strategy is studied. Disclosure of factors of distribution and strengthening of short-term policy development occurs in the theoretical part of this work through the prism of the theory of information asymmetry. In addition, the article presents the means by which it is possible to neutralize the consequences of the negative impact of short-termism in the light of the theory of risk management, the theory of agencies and their tools. The practical part of the study is reduced to the study of the degree of efficiency of corporate risk management on the example of a sample of companies, as well as econometric analysis of the company's tendency to short-termism. There is no significant model demonstrating the tendency of management to short-termism, but an indirect relationship between the effects of short-termism, expressed in such indicators as WACC and corporate risk management tools, based on the theory of risk management, is confirmed. Thus, considering the phenomenon of short-termism, in an attempt to get a reliable understanding of the processes that stimulate its appearance and the facts that reduce its presence in the company's management policy, we touched on the theory of information asymmetry, the theory of Agency relations, risk management, as theories closely intersecting and arising from one another in the study of the phenomenon of investment myopia.
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Keywords: investment myopia, corporate risk management, theory of asymmetric information.

DOI 10.17586/2310-1172-2018-11-3-61-75

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