Ryklin K.A.Financial university under Government of Russian Federation, Moscow, Russian Federation sbogatyrev@fa.ru
Importance The current circumstances in the Russian stock and financial markets provide substantial evidence that the difference between the theoretical and factual prices of the asset appraised grows huge. The same is true for foreign countries. In contemporary finance, conventional analysis and forecasting methods fail to explain financial phenomena. When making conclusions and final estimates, we resorted to behavioral factors underlying financial decisions. The article presents the specifics of behavioral assessment of the Russian retailers in the current crisis conditions. Objectives We compared the classical appraisal of the specific business, its results and behavioral assessment. We describe how it would be possible to explain anomalies with the market cost in terms of behavioral finance. Methods The article involved achievements of the behavioral finance theory, illustrating which key psychological concepts and heuristics shape the behavioral framework for analyzing financial phenomena. Displaying the specific Russian company, we apply the behavioral assessment model and the Barberis, Shleifer and Vishny model of investor sentiment. Results The cost analysis involved an integral and consistent concept of behavioral finance adapted to the Russian conditions with its R&D, methodological framework and behavioral assessment models. Conclusions and Relevance We conclude that behavioral models for evaluating the assets can be applied to measure the business value of the Russian companies. Considering the market anomalies, such models will help interpret the difference between the company's share quotations and its market value, plan investment strategies, describe how investors would behave in the stock market.
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