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The Investment Attractiveness of Companies Listed on the Warsaw Stock Exchange to Sovereign Wealth Funds

Author

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  • Dariusz Urban

    (Faculty of Management, Department of Finance and Strategic Management, University of Lodz, Poland)

Abstract

The aim of this study is to shed some light on the factors determining the investment decisions of Sovereign Wealth Funds. Using the financial data from companies listed on the Warsaw Stock Exchange, the author employs a logit model to analyse the probability that firms are targeted for investment by the Norwegian Sovereign Wealth Fund. These findings suggest that not only the growth of earnings per share increases the probability of such investment, but that also a company whose shares have been bought by the Government Pension Fund Global has, on average, a higher level of earnings per share than companies not targeted by the Fund. This study contributes to a deeper understanding of the investment activities of the world’s largest Sovereign Wealth Fund.

Suggested Citation

  • Dariusz Urban, 2016. "The Investment Attractiveness of Companies Listed on the Warsaw Stock Exchange to Sovereign Wealth Funds," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(2), pages 333-350, June.
    • Handle: RePEc:aka:aoecon:v:66:y:2016:i:2:p:333-350
    Note: The author would like to thank Paweł Baranowski, Błażej Socha, and Wojciech Kariozen for their helpful suggestions and constructive comments on the initial drafts of the paper. The author is solely responsible for any errors and omissions.
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    References listed on IDEAS

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    Cited by:

    1. Ermanno Affuso & Khandokar M. Istiak & Alex Sharland, 2022. "Sovereign wealth funds and economic growth," Journal of Asset Management, Palgrave Macmillan, vol. 23(3), pages 201-214, May.
    2. Bahoo, Salman & Alon, Ilan & Paltrinieri, Andrea, 2020. "Sovereign wealth funds: Past, present and future," International Review of Financial Analysis, Elsevier, vol. 67(C).
    3. 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).

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    More about this item

    Keywords

    Sovereign Wealth Fund; target selection; regression analysis; Warsaw Stock Exchange;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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