Regulating sovereign wealth funds operating overseas through an external fund manager
AbstractThis article looks at the relationship between SWFs and their recipient countries, with a focus on the impact it may have depending on the nature of the objectives pursued by the SWF from the perspective of a principal-agent framework. In particular, when the SWF has multiple objectives, there is a risk that signals are misinterpreted and lead to misguided reactions by authorities in the recipient country. Thus, hard to interpret signals do not provide a sufficient case for imposing constraints on the SWF. However, we will show that requiring the SWF to invest through intermediary asset managers may foster cooperation, especially when the objectives of the SWF and of the authorities are closely aligned. SWFs may also alleviate the concerns in recipient countries by acting as an investor (and accepting the funds) of other SWF and non-SWF investors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Working Papers with number hal-00488662.
Date of creation: 02 Jun 2010
Date of revision:
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00488662/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jean-Philippe Chancelier & Michel De Lara & André de Palma, 2007.
"Risk aversion in expected intertemporal discounted utilities bandit problems,"
THEMA Working Papers
2007-15, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Jean-Philippe Chancelier & Michel Lara & André Palma, 2009. "Risk aversion in expected intertemporal discounted utilities bandit problems," Theory and Decision, Springer, vol. 67(4), pages 433-440, October.
- Edwin M. Truman, 2007. "Sovereign Wealth Funds: The Need for Greater Transparency and Accountability," Policy Briefs PB07-6, Peterson Institute for International Economics.
- Fahad Khalil & Jacques Lawarree, 2006. "Incentives for corruptible auditors in the absence of commitment," Working Papers UWEC-2005-09-P, University of Washington, Department of Economics.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010.
"A theory of Fads, Fashion, Custom and cultural change as informational Cascades,"
Levine's Working Paper Archive
1193, David K. Levine.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Jean-Jacques Laffont & Jérome Pouyet, 2000.
"The Subsidiarity Bias in Regulation,"
0001, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Jun 2000.
- Christine A. Parlour & Uday Rajan, 2001. "Competition in Loan Contracts," American Economic Review, American Economic Association, vol. 91(5), pages 1311-1328, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.