Firm values and sovereign wealth fund investments

Dewenter, Kathryn L.; Han, Xiaoxu; Malatesta, Paul H.

doi:10.1016/j.jfineco.2010.05.006

Cited by 168 publications

(122 citation statements)

References 26 publications

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“…While the effectiveness of the GPF as a regulatory mechanism seems to be linked to Norway's social origins (Salamon and Anheier, 1998;Sivesind and Selle, 2010), it does raise questions about the potential of SWFs to influence investment practices through the use of ethical policies and to contribute towards the promotion of a "civil economy", (Diamond, 2011;Midtun, 2013). More research is needed on SWFs, especially on their investment practices and how they affect other market participants (Dewenter et al, 2010;Reiche, 2010).…”

Section: Discussionmentioning

confidence: 99%

“…There is also growing interest in the extent to which these funds may be used to pursue the national interests of sovereign shareholders over and above financial returns (Ng, 2010;Lhaopadchan, 2010;Rios-Morales et al, 2011). SWFs have influenced firms they invest in and even government policy (Dewenter et al, 2010). However, our interest in this study is with the potential soft regulatory influence of the SWF, if its practices are mimicked by charities in Norway.…”

Section: Notesmentioning

confidence: 99%

“…While in the UK charities' investment practices are regulated through a series of legislative requirements, Norway has no legislation to restrict ethical investment. Yet, in contrast to the UK, Norway does have a large SWF[7] the state controlled GPF (Dewenter et al, 2010;Reiche, 2010) that has an active ethical investment policy. We contend that these differences in institutional fields provide an opportunity to explore whether charities mimic the practice of the SWF.…”

Section: Introductionmentioning

confidence: 99%

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Charity ethical investments in Norway and the UK

Kreander

McPhail

Beattie

2015

Accounting, Auditing &Amp; Accountability Journal

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Access to this document was granted through an Emerald subscription provided by emeraldsrm:198285 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to explore whether, how and why ethical investment practices of charities differ between two countries with quite different ideological and institutional frameworks -Norway and the UK. Design/methodology/approach -The paper uses mixed methods and a cross-sectional field study design to explore the ethical investment practices of 300 of the largest charities by investments in the UK and Norway. Practices are theorized using the dual lens of institutional theory and social origins theory. Findings -The paper provides evidence on why charities established the practice of ethical investment. The results show that large charities were more likely to have an ethical policy; that charities with moderate public sector funding were more likely to have an ethical policy. In line with institutional theory some Norwegian charities with public sector funding mimic the policy of the Government Pension Fund, and the ethical investment policy of Norwegian charities was more influenced by donors. Institutional entrepreneurs (charity founders) had a more prominent influence in UK charities.Research limitations/implications -The paper highlights that more research is needed on sovereign wealth funds, their investment practices and how they affect charities. Practical implications -The findings of this paper highlight the potential role that the ethical investment practices of sovereign can play a soft regulatory function in changing the behaviour of other investors. Social implications -To the extent that ethical investment practices are construed as having a positive social impact, then this study shows how a government sovereign wealth fund can influence the spread of ethical investment practices. Originality/value -This paper, which sits at the nexus of the charity and corporate social responsibility (CSR) literatures, contributes by responding to calls for more research on charity practices in different countries and CSR practices in different countries. This comparison also contributes to the development of institutional theory by shedding ...

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Section: Discussionmentioning

confidence: 99%

Section: Notesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Charity ethical investments in Norway and the UK

Kreander

McPhail

Beattie

2015

Accounting, Auditing &Amp; Accountability Journal

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“…The second includes analyses focusing on the macroeconomic implications of SWFs activity for a single economy as well as for the global financial market (Urban 2011;Sun -Hesse 2009;Beck -Fidora 2008). In the third stream of literature, the focus is on the microeconomic implications of SWFs' investments on targeted firms and, more precisely, on listed companies both in the short and in the long term (Kotter -Lel 2011;Dewenter et al 2010;Bortolotti et al 2009). The fourth examines the issue of corporate governance, transparency, and geopolitical concerns (Jiránková 2012;Ćusović 2012;Bassan 2011;Clark -Monk 2009;Gilson -Milhaupt 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, in the long term, risk-adjusted abnormal returns of SWFs were significantly negative, suggesting that equity acquisitions made by SWFs were followed by a deterioration of firm performance. Dewenter et al (2010) have empirically examined the effects of SWFs' investment on the values of the companies in which they invested. The authors found evidence that the announcement of SWFs' stock transactions coincided with significant changes in target firm value.…”

Section: Literature Reviewmentioning

confidence: 99%

The investment attractiveness of companies listed on the Warsaw Stock Exchange to Sovereign Wealth Funds

Urban

2016

Acta Oeconomica

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The aim of this study is to shed some light on the factors determining the investment decisions of Sovereign Wealth Funds. Using the financial data from companies listed on the Warsaw Stock Exchange, the author employs a logit model to analyse the probability that firms are targeted for investment by the Norwegian Sovereign Wealth Fund. These findings suggest that not only the growth of earnings per share increases the probability of such investment, but that also a company whose shares have been bought by the Government Pension Fund Global has, on average, a higher level of earnings per share than companies not targeted by the Fund. This study contributes to a deeper understanding of the investment activities of the world’s largest Sovereign Wealth Fund.

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Rise of the Fiduciary State: A Survey of Sovereign Wealth Fund Research

Megginson¹,

Fotak²

2016

A Collection of Reviews on Savings and Wealth Accumulation

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Firm values and sovereign wealth fund investments

Cited by 168 publications

References 26 publications

Charity ethical investments in Norway and the UK

Charity ethical investments in Norway and the UK

The investment attractiveness of companies listed on the Warsaw Stock Exchange to Sovereign Wealth Funds

Rise of the Fiduciary State: A Survey of Sovereign Wealth Fund Research

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