The Rise of Sovereign Wealth Funds: Definition, Organization, and Governance

Bortolotti, Bernardo; Fotak, Veljko; Megginson, William L.

doi:10.2139/ssrn.2538977

Cited by 6 publications

(2 citation statements)

References 64 publications

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“…The key factor that seems to explain these obvious contradictions is that the government purchases of equity have recently been conducted mostly by state entities acting as investors rather than owners. Much of this state investment was channeled through special investment vehicles -sovereign wealth funds (SWFs), and the vast bulk of stock purchases have been cross border transactions (Bortolotti, Fotak, Megginson 2014).…”

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confidence: 99%

The Political Implications of Norway’s Sovereign Wealth Fund investments in Eastern and Central Europe

Urban¹

2017

Political Players? Sovereign Wealth Funds’ Investments in Central and Eastern Europe

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confidence: 99%

The Political Implications of Norway’s Sovereign Wealth Fund investments in Eastern and Central Europe

Urban¹

2017

Political Players? Sovereign Wealth Funds’ Investments in Central and Eastern Europe

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“…In that sense, this shift from the state as an owner of companies to the state as an investor has given rise to the 'fiduciary state' . 64 But will the state exercise its fiduciary duties to the companies in which it invests in the same way that private investors would? Bernstein et al have conducted detailed research on the strategies of SWFs between 1984 and 2007, analysing 2,662 investments and examining 'the propensity of the funds to invest domestically, the equity price levels at the time of their investment, the changes in equity prices after their investment, and the size of the acquired stakes' .…”

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confidence: 99%

Regulating Sovereign Wealth Funds: When States Become Entrepreneurs

Mation¹

2016

CILJ

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The rise of sovereign wealth funds and other forms of state-owned investments challenges the traditional role of the State and has generated unease at the global financial system. Are sovereign wealth funds motivated by purely commercial considerations? Could they be used to advance political interests? How should they be regulated? Most of the scholarship on the subject and the initiatives to regulate them advance the idea that the adequate behaviour for a state-owned fund is to act just as a private investor would. The 'privatisation' (understood as having the State behave like a private investor) of this type of investor is a way to deal with the practical consequences of their operation and also stabilise the standard theoretical conceptions on the market and the state. Although some 'privatisation' can be helpful, I propose to examine some of the consequences of looking at sovereign wealth funds solely through the lens of private law and private interest, in order to highlight possible pitfalls of this approach. In particular, suspicion about sovereign wealth funds has polarised the debate on their motivations: they are seen through a binary code of the good 'commerciallybased investment strategies' or the bad 'politically-driven' moves. This paper presents a more nuanced perspective on the non-commercially based considerations of sovereign wealth funds, in particular those considerations related to socioeconomic development. Moreover, it advances the idea that the problem of governance of state-owned funds can be seen both from an external perspective-concerning the relation between the fund and the companies (or countries) receiving its resources-and from an internal perspective-concerning the relation between the fund and its constituents, such as the citizens of the investor state. While 'privatization' might provide good answers to deal with external governance, it is insufficient to tackle internal governance issues.

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Hegemony, global capitalism and the role of diplomacy in extractive industries

Andrew,

Baker

2024

AAAJ

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PurposeThis study explores a hegemonic alliance and the role of relational forms of accounting and accountablity in the making of contemporary capitalism.Design/methodology/approachWe use the WikiLeaks “Cablegate” documents to provide an account of the detailed machinations between interest groups (corporations and the state) that are constitutive of hegemonic activity.FindingsOur analysis of the “Cablegate” documents shows that the US and Chevron were crafting a central role for Turkmenistan and its president on the global political stage as early as 2007, despite offical reporting beginning only in 2009. The documents exemplify how “accountability gaps” occlude the understanding of interdependence between capital and the state.Research limitations/implicationsThe study contributes to a growing idea that official accounts offer a fictionalized narrative of corporations as existing independently, and thus expands the boundaries associated with studying multinational corporate activities to include their interdependencies with the modern state.Social implicationsThe study traces how global capitalism extends into new territories through diplomatic channels, as a strategic initiative between powerful state and capital interests, arguing that the outcome is the empowerment of authoritarian states at the cost of democracy.Originality/valueThe study argues that previous accounting and accountability research has overlooked the larger picture of how capital and the state work together to secure a mutual hegemonic interest. We advocate for a more complete account of these activities that circumvents official, often restricted, views of global capitalism.

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The Rise of Sovereign Wealth Funds: Definition, Organization, and Governance

Cited by 6 publications

References 64 publications

The Political Implications of Norway’s Sovereign Wealth Fund investments in Eastern and Central Europe

The Political Implications of Norway’s Sovereign Wealth Fund investments in Eastern and Central Europe

Regulating Sovereign Wealth Funds: When States Become Entrepreneurs

Hegemony, global capitalism and the role of diplomacy in extractive industries

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