NEWS DIGEST
HOW A LEADER’S HISTORY OF MENTAL WELLBEING MAY IMPACT INVESTMENT DECISIONS
SCHOOL : Norwegian School of Economics (Norges Handelshøyskole, NHH), Norway
Leaders of SMEs who have experienced mental health problems often make less efficient investment decisions, according to a new study from NHH that highlights the importance of ensuring that decision-making does not rest with only a few individuals. The study found a small but consistent pattern among firms in Finland led by executives with a history of mental health illness: that they tended to invest too little in capital such as technology, equipment and buildings, while investing more in employees than might be deemed financially efficient. The researchers estimated that these firms’ investments were, on average, 4.8 per cent less efficient with regards to capital investment than those led by executives without a history of mental illness and 5.3 per cent less efficient in relation to labour decisions. “It is not surprising that mental health affects decision quality. What is interesting is how the effects vary across different types of investment,” stated associate professor in financial accounting at NHH and study co‑author Mariya Ivanova.
The study drew on data from more than 40,000 firms and 124,000 CEOs and board members. It found that 4.3 per cent of its sample had received a clinical diagnosis of mental disorder before taking up their position. Among this number, almost 60 per cent had anxiety and mood disorders, including depression, while 16 per cent cited a substance-related disorder. While investment inefficiency was found among SMEs, larger firms led by executives with a history of mental ill health did not produce statistically detectable differences. Such companies commonly possess more formal structures around major decisions and multiple decision makers, highlighting where SMEs should, according to Ivanova, focus their attention. “Top executives have long been seen as exceptionally resilient, which is why their mental health has received little attention,” Ivanova added. Yet a 2022 Deloitte survey indicated that 41 per cent of c-suite executives regularly feel stressed and 26 per cent regularly feel depressed. TBD
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Ambition • ISSUE 5 • 2026 11
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