Sovereign wealth fund investment decisions: Temasek Holdings

Richard Heaney, L. Li, V. Valencia

Research output: Contribution to journalArticle

8 Citations (Scopus)
318 Downloads (Pure)

Abstract

Sovereign wealth funds (SWFs) are investment portfolios and savings funds that are controlled and actively managed by a sovereign government. In this paper, we document the investment behaviour of a specific fund, Temasek Holdings, which is the Singapore government’s SWF. Using a sample dataset of 150 publicly listed Singapore firms over the period 2000—2004, we find evidence suggesting that Temasek has a predisposition to invest in firms that are relatively large and have few director block holders. The incentive to invest also increases in firms with lower systematic risk and with compensation schemes that provide the board of directors with stocks and options.

Original languageEnglish
Pages (from-to)109-120
JournalAustralian Journal of Management
Volume36
Issue number1
DOIs
Publication statusPublished - Apr 2011

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