This paper investigates whether determinants and effects of sovereign wealth funds (SWFs) investmentvary across types of funds. To address this issue, we classify SWFs based on their scopeand the origin of wealth. We find that saving and reserve funds and non-commodity funds pickbetter-performing firms. Furthermore, effects vary among SWF categories. In fact, saving andreserve funds assume a passive role in managing investments, unlike multi-objective and developmentfunds which have detrimental effects on the target companies. As a whole, thesefindings confirm that heterogeneity of SWFs in terms of how they target firms and activismmatters.
Do investment determinants and effects vary across sovereign wealth fund categories? A firm-level analysis
Varrone N.
2019-01-01
Abstract
This paper investigates whether determinants and effects of sovereign wealth funds (SWFs) investmentvary across types of funds. To address this issue, we classify SWFs based on their scopeand the origin of wealth. We find that saving and reserve funds and non-commodity funds pickbetter-performing firms. Furthermore, effects vary among SWF categories. In fact, saving andreserve funds assume a passive role in managing investments, unlike multi-objective and developmentfunds which have detrimental effects on the target companies. As a whole, thesefindings confirm that heterogeneity of SWFs in terms of how they target firms and activismmatters.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
