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The presented study explores opportunities for improving the efficiency of financial business support institutions with the purpose of enhancing the competitiveness of the regional economy.Aim. The study aims to identify opportunities and new tools for stimulating economic activity in regions through institutional business support measures.Tasks. The authors analyze the current performance and adequacy of financial business support tools utilized by development institutions at the regional level (through the example of the Rostov region) and formulate proposals on financial business support.Methods. This study uses general scientific methods of cognition (analysis, generalization, economic modeling, etc.) to examine the efficiency of business support provided by development institutions in various aspects and to identify the major directions for improving their operation.Results. Given the current economic situation in the national and global financial markets, the ability of regions to provide financial support to entrepreneurs (in particular, by reducing the cost of application of borrowed funds) is a key factor of their investment attractiveness. As a result, it is possible to achieve sustainable economic growth, which lays the foundation for the long-term competitiveness of the regional economy.Conclusion. Expanding the scope of institutional financial support at the meso-level in the basic non-resource industries and implementing a policy to support and maintain the financial stability of systemic companies in the region facilitates entrepreneurial activity and contributes to the development of the regional economy.

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This chapter uses the relationship between behavioral factors and the creditworthiness of small-scale enterprises to increase access of SMEs to credit facilities. The inability of several small businesses to secure loans cannot be overemphasized. Heuristics affecting entrepreneurs are explained in this chapter, and a regression model showing the dependence of creditworthiness on behavioral factors is proposed. If banks consider using psychometric tools in testing for creditworthiness of small-scale entrepreneurs, access to credit facilities will be significantly increased and businesses will flourish. Regressesion models such as the one explained in this chapter may be imbedded in psychometric tools to enhance creditworthiness testing and improve the quality of loans that banks give.

This paper analyses the effects of financial statements on the efficiency of the Russian stock market. Specifically, we analyse the impact of financial reporting on stock prices of the firms listed on the Moscow Stock Exchange. By means of the widely used event study method, which dates back to Ball and Brown [1], we analyse how corporate news publication affects stock prices. Our research analyses 1000 samples, each consisting of 30 events, independent of the underlying stocks/firms and analyses the relation between the behaviour of the share prices and the release of the firms’ annual, quarterly, and unscheduled financial statements. We use the daily stock price data of 56 components of the Russia Trading System Index from the years 2014 to 2020 in order to analyse the relation between the behaviour of the shares’ prices and the releases of the firms’ annual, quarterly, and unscheduled financial statements. Using an ordinary least squares market model, we estimate the market parameters and especially the so-called normal returns, i.e. benchmark values. With this, we calculate the abnormal returns, i.e. the price changes caused by the events cf. [1; 2]. We perform several statistical tests for non-Gaussian distribution of these abnormal returns and find that there is a significantly non-Gaussian relationship between the publication of financial statements and the prices of the shares, which should not be the case in an efficient market [2]. Our results indicate that stock price volatility on the publication of financial statements may be caused by some information asymmetry, and demonstrate that the Russian stock market responds significantly to new information. Thus, we discuss recommendations to improve the information content of financial statements in Russia. This means analysts and fund managers can use new information to predict future stock returns and, thus, construct profitable portfolios.