The impact of sovereign wealth fund ownership on the financial performance of firms: the evidence from emerging markets

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dc.contributor.authorUrban, Dariusz
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2017-10-02
dc.date.available2017-10-02
dc.date.issued2017-10-02
dc.description.abstractSovereign Wealth Funds have been regarded as investment vehicles established in order to manage, in a rational and profit-oriented way, pools of national wealth for future generations. SWFs are among the most important financial institutions in global financial markets, and constitute a solid element in the architecture of the international financial safety net. Similarly to other institutional investors, Sovereign Wealth Funds possess huge amounts of capital. What distinguishes them the most from other financial institutions is the fact that they are owned, managed and controlled by sovereign states, have limited liquidity needs, a lower-than-market-average-level of redemption risk, a long-term, intergenerational investment horizon and relatively high risk tolerance. The question of whether investment from Sovereign Wealth Funds determines changes in corporate financial performance of a targeted firm is still unanswered question in the literature. This study tests empirically the impact of Sovereign Wealth Funds’ ownership on the financial performance of targeted companies. Using the data of companies listed on the Warsaw Stock Exchange, we employ regression to analyze the relationship between the funds’ investment and accounting, as well as the market outcomes of the firm. The empirical findings of this research suggest that Sovereign Wealth Funds’ ownership has a positive influence on the price to book value of the firm. This article contributes to ongoing research in the field of studies related to financial aspects of SWF’s investment behavior. The empirical findings of this research can also serve as a useful reference for companies and academics concerning themselves with investment decision making in emerging markets, as well as the role of institutional investors.en
dc.formattext
dc.format.extent13 s.cs
dc.identifier.doi10.15240/tul/001/2017-3-012
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/20922
dc.language.isoen
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisherTechnická Univerzita v Libercics
dc.publisher.abbreviationTUL
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dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectsovereign wealth fundsen
dc.subjectinstitutional investoren
dc.subjectfinancial performanceen
dc.subjectinvestingen
dc.subjectemerging economiesen
dc.subject.classificationG11
dc.subject.classificationG23
dc.subject.classificationC13
dc.subject.classificationF21
dc.titleThe impact of sovereign wealth fund ownership on the financial performance of firms: the evidence from emerging marketsen
dc.typeArticleen
local.accessopen
local.citation.epage188
local.citation.spage176
local.facultyFaculty of Economics
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue3
local.relation.volume20
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