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Enacting the rules of global finance: sovereign wealth funds and the promotion of corporate governance reform

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  • Michael Fini
  • Lena Rethel

Abstract

In the wake of the financial crises of the last two decades, the promotion of corporate governance reform has emerged as a priority concern of the international financial community. This paper draws attention to the role played by Sovereign Wealth Funds (SWFs) in this process. It shows that SWFs’ enactment of a common set of shareholder-oriented corporate governance reforms has not solely been driven from the ‘outside in’—i.e. conforming to prevailing global financial norms and pressures. Indeed, various SWFs are in fact attempting to change financial best practice from the ‘inside out’ by promoting a transformative shareholder-value model of corporate governance throughout the companies they hold in their investment portfolios. To better elucidate the dynamics of this process, this paper looks at the experience of two SWFs in Asia and Europe. More specifically, it will explore the corporate governance agendas of Norway’s Government Pension Fund-Global and Malaysia’s Khazanah Nasional Berhad. Copyright Springer-Verlag Berlin Heidelberg 2013

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  • Michael Fini & Lena Rethel, 2013. "Enacting the rules of global finance: sovereign wealth funds and the promotion of corporate governance reform," Asia Europe Journal, Springer, vol. 11(2), pages 163-178, June.
    • Handle: RePEc:kap:asiaeu:v:11:y:2013:i:2:p:163-178
    DOI: 10.1007/s10308-013-0348-4
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    Cited by:

    1. Bahoo, Salman & Alon, Ilan & Paltrinieri, Andrea, 2020. "Sovereign wealth funds: Past, present and future," International Review of Financial Analysis, Elsevier, vol. 67(C).

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