scholarly journals Temptation and the Virtues of Long-Term Commitment: The Governance of Sovereign Wealth Fund Investment

2010 ◽  
Author(s):  
Gordon L. Clark ◽  
Eric R. W. Knight
Keyword(s):  
Sovereign Wealth Fund ◽  
Fund Investment

Sovereign wealth fund investment and the return-to-risk performance of target firms

2012 ◽  
Vol 21 (2) ◽  
pp. 315-340 ◽  
Author(s):  
April M. Knill ◽  
Bong Soo Lee ◽  
Nathan Mauck
Keyword(s):  
Sovereign Wealth Fund ◽  
Target Firms ◽  
Fund Investment

scholarly journals Sovereign Wealth Fund Investment Patterns and Performance

2010 ◽  
Author(s):  
Bernardo Bortolotti ◽  
Veljko Fotak ◽  
William Miracky ◽  
William L. Megginson
Keyword(s):  
Sovereign Wealth Fund ◽  
And Performance ◽  
Fund Investment ◽  
Investment Patterns

The long-term impact of sovereign wealth fund investments

2019 ◽  
Vol 45 ◽  
pp. 115-138 ◽  
Author(s):  
Raphael Jonghyeon Park ◽  
Simon Xu ◽  
Francis In ◽  
Philip Inyeob Ji
Keyword(s):  
Sovereign Wealth Fund ◽  
Long Term Impact

Ambiguity, discretion and ethics in Norway's sovereign wealth fund

2015 ◽  
Vol 17 (4) ◽  
pp. 603-631
Author(s):  
Heather Hachigian
Keyword(s):  
Financial Markets ◽  
Institutional Investors ◽  
Analytical Framework ◽  
Investment Policy ◽  
Ethical Investment ◽  
Policy Goal ◽  
Sovereign Wealth Fund ◽  
Investment Policies ◽  
Implementation Problems

An increasing number of public institutional investors are adopting sustainable and ethical investment policies. While financial tests of materiality and norm structures are often assumed to guide their implementation, this assumption is challenged by the increasing complexity in global financial markets. This article provides an analytical framework to explain these implementation problems by drawing attention to the ambiguity inherent in investment policies. Ambiguity means there is no ideal outcome. Agents must use their discretion to interpret investment policies, which is at odds with conventional theories of discretion that assume a unique policy goal. This article argues that ambiguity impacts institutional investors in two contrasting ways. Ambiguity acts as a built-in mechanism for adapting investment policies to increasing complexity in global financial markets. But the resources required to maintain legitimacy under ambiguity detract from the investor's capacity to actually implement its policy. This framework is used to analyze the evolution of the Norwegian sovereign wealth fund (SWF)'s ethical investment policy. The article finds that agents use their discretion to interpret the Fund's investment policy in ways that align with its long-term mandate.

scholarly journals Sovereign wealth fund investment decisions: Temasek Holdings

2011 ◽  
Vol 36 (1) ◽  
pp. 109-120 ◽  
Author(s):  
Richard Heaney ◽  
Larry Li ◽  
Vicar Valencia
Keyword(s):  
Investment Decisions ◽  
Sovereign Wealth Fund ◽  
Fund Investment

Investment Terms and Level of Control of China’s Sovereign Wealth Fund in its Portfolio Firms

2017 ◽  
Author(s):  
Jing Li
Keyword(s):  
Voting Rights ◽  
Chinese Government ◽  
Sovereign Wealth Fund ◽  
Indirect Control ◽  
Formal Control ◽  
Target Firms ◽  
Board Representation

This chapter briefly reviews the literature on sovereighn wealth funds (SWFs) with a focus on their investment characteristics and strategies. It describes the China Investment Corporation (CIC) with particular reference to its connections with the Chinese government. This is followed by analyses of hand-collected data based on 61 M&As, 8 JVs, and 28 fund investments made by the CIC 2007–15. The analyses focus on the formal control (equity stakes, voting rights, director nomination and board representation) of the CIC in its target firms, and on the indirect control benefits that the CIC can extract from them in their long-term post-investment relationships. The findings question the efficacy of proposals forcing SWFs to remain passive by suspending their voting rights, and suggest that SWF hosting countries should carefully consider the necessity and level of regulations directed at SWFs as a particular type of investors to guard against potential protectionism.

Sovereign Wealth Fund Investment and Firm Volatility

2017 ◽  
Author(s):  
April Knill ◽  
Nathan Mauck
Keyword(s):  
Idiosyncratic Risk ◽  
Investment Horizon ◽  
Popular Press ◽  
Sovereign Wealth Funds ◽  
Sovereign Wealth Fund ◽  
Target Firms ◽  
Fund Investment ◽  
The Relationship ◽  
Target Markets

The popular press and politicians have expressed concerns regarding the potential destabilizing force of sovereign wealth funds (SWFs). This chapter addresses these concerns by presenting results from the literature on the volatility and compensation of risk of SWF target firms and target markets. SWF investments (sales) are associated with a reduction (increase) in the compensation of risk for a three-year (five-year) term. Firm volatility decomposition suggests that it is mainly idiosyncratic risk that drives these impacts. The chapter reviews evidence and data that show the relationship between SWF investment and firm volatility depends on the investment horizon examined. It explains that the evidence is consistent with the view that the relationship between SWF investment and firm volatility is mainly attributable to idiosyncratic risk.

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