The impact of sovereign wealth funds on global financial markets

Beck, Roland; Fidora, Michael

doi:10.1007/s10272-008-0268-5

Cited by 133 publications

(85 citation statements)

References 26 publications

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“…On the finance side, one question is whether such massive funds could have an impact on the financial markets, and whether this effect is good (enhanced liquidity, long-run investment horizons) or bad (systemic risks, volatility). On the one hand, Beck and Fidora (2008) and Sun and Hesse (2009) evaluate the short-term financial impact of SWFs on selected public equity markets in which they invest and found no significant destabilizing effect. On the contrary, Kotter and Lel (2008) find a significant, and positive, return announcement effect.…”

Section: Literature Reviewmentioning

confidence: 99%

Emergence of sovereign wealth funds

Carpantier

2018

Journal of Commodity Markets

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This paper tests the theoretically founded hypothesis that the surge of SWF establishments is determined by three main factors: 1) the existence of natural resources profits, 2) the government structure and 3) the ability to invest usefully in the domestic economy. We test this hypothesis on a sample of 20 countries that established an SWF in the period 1998-2008 by comparing them to the roughly 100 countries that did not set up a fund in the same period. We find evidence for all three factors. The results suggest that SWFs tend to be established in countries that run an autocratic regime and have difficulties finding suitable opportunities for domestic investments. We do not find the net foreign asset position of a country to be similarly related to the explanatory variables, indicating that the establishment of an SWF is distinct from a national accounting result. We argue that our results indicate that it is relevant to study how an SWF interacts with the domestic economy and government policy.

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Section: Literature Reviewmentioning

confidence: 99%

Emergence of sovereign wealth funds

Carpantier

2018

Journal of Commodity Markets

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“…The first analyses the objectives of SWF activity, the key features of these investors, their asset allocations and organisational models as well as the size of their investments (Mele 2014;Bertoni -Lugo 2011;Avendano -Santisi 2009). 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).…”

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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“…Although there are results that point in the opposite direction (see e.g. Beck & Fidora 2008;Hong & Kacperczyk 2009), a number of studies indicate that large institutional investor's investment decisions influence stock prices and returns indirectly through what these decisions signal to other investors. 6 To sum up, on the standard picture, investors should do what they can to keep their hands clean and avoid investing in companies with a morally unacceptable practice.…”

Section: Signaling Effectsmentioning

confidence: 99%

Investor responsibility and Norway’s Government Pension Fund – Global

Nagell

2011

Etikk Praksis - Nord J Appl Ethics

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This article identifies and critically examines three differentaspects of investor responsibility. First, investors haveresponsibilities toward their clients (the so-called fiduciaryduties). Second, investors are responsible for taking steps toreduce the risk that an investment directly or indirectlycontributes to harm (avoid complicity). Finally, investorsshould take into consideration the symbolic and signallingeffects of an investment decision. This article discusses howthese responsibilities should be interpreted and also howthey play out in practice. Norway’s Government PensionFund is used as a case in point.

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The impact of sovereign wealth funds on global financial markets

Abstract: O c c a s i O n a l Pa P e r s e r i e s n O 9 1 / J u ly 2 0 0 8

Cited by 133 publications

References 26 publications

Emergence of sovereign wealth funds

Emergence of sovereign wealth funds

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

Investor responsibility and Norway’s Government Pension Fund – Global

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