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The Color of Government Money. Do Investors Differently Value the Investment of Sovereign Wealth Funds?

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  • Urban Dariusz

    (Department of Finance and Strategic Management, University of Łódź, Faculty of Management)

Abstract

The article aims at pointing out the differences in market reactions regarding the announcement of an investment of selected Sovereign Wealth Funds in companies listed on the London Stock Exchange. The research sample consists of 796 market transactions made by four selected Sovereign Wealth Funds. The author employed event study methodology to calculate the average abnormal returns and cumulative abnormal returns for each fund in subsamples. The empirical findings suggest that investors react differently to the information about a fund’s investment. To the best of the author’s knowledge, the literature does not provide any answer as to how the market reacts to information disclosure of individual funds. Therefore, this paper bridges the gap in the literature within this field.

Suggested Citation

  • Urban Dariusz, 2017. "The Color of Government Money. Do Investors Differently Value the Investment of Sovereign Wealth Funds?," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(1), pages 25-34, November.
    • Handle: RePEc:vrs:finiqu:v:13:y:2017:i:1:p:25-34:n:4
    DOI: 10.1515/fiqf-2016-0016
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    References listed on IDEAS

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    More about this item

    Keywords

    sovereign wealth funds; event study; London Stock Exchange; investment;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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