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Sovereign Wealth Funds: Stylized Facts about their Determinants and Governance *
Author(s) -
Aizenman Joshua,
Glick Reuven
Publication year - 2009
Publication title -
international finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 39
eISSN - 1468-2362
pISSN - 1367-0271
DOI - 10.1111/j.1468-2362.2009.01249.x
Subject(s) - stylized fact , sovereign wealth fund , corporate governance , transparency (behavior) , economics , affect (linguistics) , asset (computer security) , financial system , business , monetary economics , finance , foreign direct investment , macroeconomics , political science , linguistics , philosophy , computer security , computer science , law
Concerns about the implications of foreign investments by sovereign wealth funds (SWFs) stem in large part from apprehensions about the objectives and governance quality of these institutions. This paper contributes to a better understanding of the stylized facts of SWFs by providing a statistical analysis of a range of characteristics of SWFs, including the motivation for their establishment as well as their size, governance and effect on reserve management behaviour. Specifically, it estimates what factors foster the establishment of SWFs as well as affect their size. It also investigates the extent to which the governance and transparency of individual SWFs correlate with domestic and global governance practices. Lastly, it analyses how asset accumulation by SWFs may affect central bank holdings of official reserves.