IDEAS home Printed from https://ideas.repec.org/a/ksp/journ2/v4y2017i3p334-342.html
   My bibliography  Save this article

The role of institutional factors when determining investment strategies of sovereign wealth funds in stock market

Author

Listed:
  • Mehmet AKYOL

    (Gümüþhane University, FEAS, Department of Economics, Gümüþhane, Turkey.)

  • Yýldýrým Beyazýt ÇÝÇEN

    (Gümüþhane University, FEAS, Department of Economics, Gümüþhane, Turkey.)

Abstract

Sovereign Wealth Funds (SWF) are investment vehicles of governments which use its assets in hand for the favor of public interest. SWFs invest a vast amount of money that varies in amount from year to year both in national and international platforms. Funds which provide an excellent source mean a lot for developed countries as much as they mean to developing countries. In this study, the factors SWFs consider while investing in the stock market are analyzed. Panel data is chosen for analysis using SWF and Heritage institutional factor index. New Zeeland is selected as example to illustrate that from which institutional factor, such as private property right, law enforcement, tax responsibility and freedom of labor, influenced investments New Zeeland SWF made in stock markets of 42 different countries.

Suggested Citation

  • Mehmet AKYOL & Yýldýrým Beyazýt ÇÝÇEN, 2017. "The role of institutional factors when determining investment strategies of sovereign wealth funds in stock market," Turkish Economic Review, KSP Journals, vol. 4(3), pages 334-342, September.
    • Handle: RePEc:ksp:journ2:v:4:y:2017:i:3:p:334-342
    as

    Download full text from publisher

    File URL: http://www.kspjournals.org/index.php/TER/article/download/1453/1443
    Download Restriction: no
    File URL: http://www.kspjournals.org/index.php/TER/article/view/1453
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dilip Das, 2009. "Sovereign-Wealth Funds: the institutional dimension," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(1), pages 85-104, March.
    2. Nuno Fernandes, 2014. "The Impact of Sovereign Wealth Funds on Corporate Value and Performance," Journal of Applied Corporate Finance, Morgan Stanley, vol. 26(1), pages 76-84, March.
    3. Dewenter, Kathryn L. & Han, Xi & Malatesta, Paul H., 2010. "Firm values and sovereign wealth fund investments," Journal of Financial Economics, Elsevier, vol. 98(2), pages 256-278, November.
    4. William L. Megginson & Miao You & Liyan Han, 2013. "Determinants of Sovereign Wealth Fund Cross-Border Investments," The Financial Review, Eastern Finance Association, vol. 48(4), pages 539-572, November.
    5. Raffaele Della Croce & Juan Yermo, 2013. "Institutional Investors and Infrastructure Financing," OECD Working Papers on Finance, Insurance and Private Pensions 36, OECD Publishing.
    6. Valeria Miceli, 2013. "Do sovereign wealth funds herd in equity markets?," Quantitative Finance, Taylor & Francis Journals, vol. 13(10), pages 1503-1518, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Megginson, William L. & Gao, Xuechen, 2020. "The state of research on sovereign wealth funds," Global Finance Journal, Elsevier, vol. 44(C).
    2. Alvaro Cuervo-Cazurra & Anna Grosman & Geoffrey T. Wood, 2023. "Cross-country variations in sovereign wealth funds’ transparency," Journal of International Business Policy, Palgrave Macmillan, vol. 6(3), pages 306-329, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arouri, Mohamed & Boubaker, Sabri & Grais, Wafik & Grira, Jocelyn, 2018. "Rationality or politics? The color of black gold money," The Quarterly Review of Economics and Finance, Elsevier, vol. 70(C), pages 62-76.
    2. Ciarlone, Alessio & Miceli, Valeria, 2016. "Escaping financial crises? Macro evidence from sovereign wealth funds' investment behaviour," Emerging Markets Review, Elsevier, vol. 27(C), pages 169-196.
    3. Alhashel, Bader, 2015. "Sovereign Wealth Funds: A literature review," Journal of Economics and Business, Elsevier, vol. 78(C), pages 1-13.
    4. İlker YAMAN & Ahmet Burçin YERELİ, 2019. "The Political Aspect of Sovereign Wealth Funds," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    5. Mehmet AKYOL & Barýþ YILDIZ, 2017. "Impact of size of the National Asset Funds on Economic Development: Panel Data Analysis on Select Nations," Journal of Economics Library, KSP Journals, vol. 4(2), pages 194-205, June.
    6. Garg, Roshni & Shukla, Abha, 2024. "Sovereign wealth funds as anchor investors in IPOs: Evidence from India," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    7. Paul Calluzzo & G Nathan Dong & David Godsell, 2017. "Sovereign wealth fund investments and the US political process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(2), pages 222-243, February.
    8. Bahoo, Salman & Alon, Ilan & Paltrinieri, Andrea, 2020. "Sovereign wealth funds: Past, present and future," International Review of Financial Analysis, Elsevier, vol. 67(C).
    9. Gangi, Francesco & Mustilli, Mario & Varrone, Nicola & Graziano, Domenico, 2023. "Target firms’ characteristics and the effects of sovereign wealth funds’ investments: Does cultural context of SWFs matter?," Research in International Business and Finance, Elsevier, vol. 65(C).
    10. Boubakri, Narjess & Cosset, Jean-Claude & Grira, Jocelyn, 2016. "Sovereign wealth funds targets selection: A comparison with pension funds," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 42(C), pages 60-76.
    11. Murtinu, Samuele & Scalera, Vittoria G., 2016. "Sovereign Wealth Funds' Internationalization Strategies: The Use of Investment Vehicles," Journal of International Management, Elsevier, vol. 22(3), pages 249-264.
    12. Ghouma, Hatem H. & Ouni, Zeineb, 2022. "SWF investments and debt maturity of target firms: An international evidence," Finance Research Letters, Elsevier, vol. 46(PA).
    13. Douglas Cumming & Pedro Monteiro, 2023. "Sovereign wealth fund investment in venture capital, private equity, and real asset funds," Journal of International Business Policy, Palgrave Macmillan, vol. 6(3), pages 330-355, September.
    14. Ang, James & Knill, April & Mauck, Nathan, 2017. "Cross-border opportunity sets: An international empirical study based on ownership types," Global Finance Journal, Elsevier, vol. 33(C), pages 1-26.
    15. Gangi, Francesco & Meles, Antonio & Mustilli, Mario & Graziano, Domenico & Varrone, Nicola, 2019. "Do investment determinants and effects vary across sovereign wealth fund categories? A firm-level analysis," Emerging Markets Review, Elsevier, vol. 38(C), pages 438-457.
    16. Alessio Ciarlone & Valeria Miceli, 2014. "Are Sovereign Wealth Funds contrarian investors?," Temi di discussione (Economic working papers) 972, Bank of Italy, Economic Research and International Relations Area.
    17. Alvaro Cuervo-Cazurra & Anna Grosman & Geoffrey T. Wood, 2023. "Cross-country variations in sovereign wealth funds’ transparency," Journal of International Business Policy, Palgrave Macmillan, vol. 6(3), pages 306-329, September.
    18. Debarsy, Nicolas & Gnabo, Jean-Yves & Kerkour, Malik, 2017. "Sovereign wealth funds’ cross-border investments: Assessing the role of country-level drivers and spatial competition," Journal of International Money and Finance, Elsevier, vol. 76(C), pages 68-87.
    19. Amar, J. & Lecourt, C. & Carpantier, J.F., 2022. "GCC Sovereign Wealth Funds: Why do they take control?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    20. Dai, Liyan & Song, Chengxuan & You, Yu & Zhang, Wenqiao, 2022. "Do sovereign wealth funds value ESG engagement? Evidence from target firm's CSR performance," Finance Research Letters, Elsevier, vol. 50(C).

    More about this item

    Keywords

    Sovereign Wealth Funds; Stock markets; Investment; Institutional factors.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ksp:journ2:v:4:y:2017:i:3:p:334-342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bilal KARGI The email address of this maintainer does not seem to be valid anymore. Please ask Bilal KARGI to update the entry or send us the correct address (email available below). General contact details of provider: http://www.kspjournals.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.