The Sovereign Wealth Fund Discount: Evidence from Public Equity Investments

• 成果类型: Article
• 署名作者: Bortolotti, Bernardo; Fotak, Veljko; Megginson, William L.
• 署名单位: University of Turin; Bocconi University; State University of New York (SUNY) System; University at Buffalo, SUNY; University of Oklahoma System; University of Oklahoma - Norman
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv036
• 发表日期: 2015
• 页码: 2993
• 关键词: large-block transactions; institutional investors; corporate governance; PRIVATE PLACEMENTS; performance; MARKET; STOCK; privatization; SHAREHOLDERS; OWNERSHIP

摘要

We document that announcement-period abnormal returns of sovereign wealth fund (SWF) equity investments in publicly traded firms are positive but lower than those of comparable private investments. Further, SWF investment targets suffer from declining return on assets and sales growth over the following three years. Our results are robust to controls for target and deal characteristics and are not driven by SWF target selection criteria. Larger discounts are associated with SWFs taking seats on boards of directors and with SWFs under strict government control acquiring greater stakes, supporting the hypothesis that political influence negatively affects firm value and performance.