- The Oxford Handbook of Sovereign Wealth Funds
- List of Figures
- List of Boxes
- List of Tables
- About the Contributors
- Introducing Sovereign Wealth Funds
- A Financial Force to be Reckoned With?: An Overview of Sovereign Wealth Funds
- Sovereign Development Funds: The Governance and Management of Strategic Investment Institutions
- From Financialization to Vulture Developmentalism: South-North Strategic Sovereign Wealth Fund Investment and the Politics of the “Quadruple Bottom Line”
- Sovereign Wealth Funds and the Resource Curse: Resource Funds and Governance in Resource-Rich Countries
- Sovereign Wealth Funds and the Global Political Economy of Trust and Legitimacy
- Sovereign Wealth Funds and Domestic Political Risk
- Sovereign Wealth Funds and Foreign Policy
- Sovereign Wealth and the Extraterritorial Manipulation of Corporate Conduct: A Multifaceted Paradigm in Transnational Law
- Sovereign Wealth Funds and Private Equity
- Co-Investments of Sovereign Wealth Funds in Private Equity
- The Use of Debt by Sovereign Wealth Funds
- Sovereign Wealth Fund Investment and Firm Volatility
- Sovereign Wealth Funds: Investment Choices and Implications Around the World
- The China Investment Corporation: From Inception to Sideline
- Investment Terms and Level of Control of China’s Sovereign Wealth Fund in its Portfolio Firms
- Strangers Are Not All Danger: Sovereign Wealth Fund Investment in the Energy Industry
- The Norwegian Government Pension Fund Global and the Implications of its Activities for Stakeholders
- Sovereign Wealth Fund Investments and Industry Performance: Evidence from Europe
- Spain and Sovereign Wealth Funds: Four Strategic Governance Types
- Sovereign Wealth Funds in Central and Eastern Europe
- Sovereign Wealth Funds in the Persian Gulf States
- The Australian Future Fund
- Is it Possible to Avoid the St Augustine Syndrome of Fiscal Procrastination?: The Case of Chile
Abstract and Keywords
This chapter introduces the 35 funds that meet the authors’ definition of SWFs, discusses their evolution from stabilization funds to SWFs and illustrates the differences and similarities between the various types of funds. The authors discuss the documented importance of SWF funding sources and survey the normative literature describing how SWFs should allocate funds. They then summarize the empirical literature studying how SWFs actually do allocate funds across asset classes, geographically, and across industries. An assessment of empirical studies examines the impact of SWF stock investments on target firm financial and operating performance, and finds universal support for a positive announcement period stock price increase. Finally, the authors point out the unresolved issues and possible extensions in SWF research, and assess how the massive decline in oil export revenues by major SWF sponsor nations such as Abu Dhabi, Russia, Kuwait, and Norway is likely to impact SWF investment levels in coming years.
Veljko Fotak is Assistant Professor of Finance at the University at Buffalo and a Fellow at the Sovereign Investment Lab, Paolo Baffi Centre on Central Banking and Financial Regulation, Bocconi University. Veljko’s research is focused on international corporate finance, with a particular emphasis on state capitalism and sovereign wealth funds. His research has been published in leading academic journals, including Journal of Financial Economics and Review of Financial Studies, and has been cited in The Wall Street Journal, the New York Post, on Bloomberg, and other media outlets. Veljko teaches courses on corporate finance and international financial management for both undergraduate and graduate students. Veljko earned a BS degree in Business Administration, an MBA with a concentration in Finance and an MS in Applied Statistics at the Rochester Institute of Technology, in Rochester, New York and a PhD in Finance at the University of Oklahoma.
Xuechen Gao received his Ph.D. in Finance from the University of Oklahoma’s Michael F. Price College of Business (2017). He also holds an MSc in Finance from the University of Texas at Dallas (2012) and a BSc in Physics from Fudan University, China (2010). Xuechen’s main research interest is corporate finance, including privatization of stateowned enterprises, sovereign wealth funds, government ownership, and Chinese share offerings. His research papers have been presented at several international and domestic elite finance conferences. Xuechen’s teaching interests include corporate finance, financial markets, international finance, and investments. He teaches Financial Intermediaries and Markets and Advanced Corporate Finance at the University of Oklahoma.
William L. Megginson is Professor and Price Chair in Finance at the University of Oklahoma’s Michael F. Price College of Business. He is also the Saudi Aramco Chair Professor in Finance at King Fahd University of Petroleum and Minerals in Dhahran, Saudi Arabia. Professor Megginson’s research interest has focused in recent years on the privatization of state-owned enterprises, sovereign wealth fund investments, and investment banking principles and practices. His research has been frequently cited in academic and professional publications, and his articles have been downloaded over 53,000 times from the Social Sciences Research Network, while his books and articles have been cited over 15,600 times (according to Google Scholar). He has served as a privatization consultant for the New York Stock Exchange, the OECD, the IMF, the World Federation of Exchanges, and the World Bank.
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