Determinants of the Market Reaction to the Appointment of Foreign Members to the Boards of Directors of Russian Companies

The board of directors is the governing body in the company, on which depends the results of the company's activities, as well as the value of a company. Investors are reacting to changes in the board of directors. The market reaction to the inclusion of foreign members in the Board of Directors is ambiguous. Therefore, the research data is to determine and direct the growth of shares of Russian companies to include a new foreign member in the Boards of Russian companies. In this work, several stages of testing were carried out. In order to determine the market reaction to the appointed foreigners, the method of event analysis was used. The least squares method was used to assess the factors influencing the market response to appointments of foreign directors. The study concluded that there is no market reaction to the inclusion of foreign directors in Russian companies. It was found that the increase in the number of scientific specialists generate a positive reaction from investors.