LONG-TERM AND SHORT-TERM STRATEGIES IN RUSSIAN COMPANIES' VALUE MANAGEMENT: IMPACT ON SUSTAINABILITY AND GROWTH

Abstract

In the modern global economy, companies must balance between short-term and long-term value management strategies. This study provides a comprehensive analysis of the impact of short-termism and long-termism on corporate value formation in Russian companies, based on extensive empirical data from various industries. The key metrics used include the adjusted Residual Income (RI) indicator and the enhanced Corporate Horizon Index (CHI), which allow for a quantitative assessment of a company's orientation toward short-term or long-term management. Comparative and statistical analysis, including mean value analysis and a two-sample t-test, revealed a statistically significant advantage for companies with long-term strategies in generating sustainable value and economic efficiency. The research findings confirm that long-termism contributes to corporate growth and stability, whereas short-termism, despite its temporary benefits, undermines business resilience, particularly during economic shocks. The study's conclusions hold practical significance for investors, financial analysts, and corporate executives making strategic decisions in the field of value management.