The Brake or the Turbocharger? Sovereign Wealth Funds as a Factor Determining Dynamic Changes of Profitability of Capital and Assets in the Listed Company

Dariusz Urban

Abstract


This article aimed at verifying the existence of differences in changes of ROA and ROE in companies listed on the Bovespa with Sovereign Wealth Fund as an investor with comparison to changes in companies without such investor. It also examines the difference in profitability measures in companies before SWFs investing and after. The author employ the U Mann-Whitney test, Kołmogorow-Smirnow test, Wilcoxon signed-rang test and sings test. The empirical findings of the research suggest that in the year following investment there are statistically significant differences in return on equity within the group of targeted companies compared to non-targeted. They also suggest that within the targeted firms the changes of ROE in the year following the investment are greater than those before investing. 


Keywords


sovereign wealth funds; institutional investor; profitability

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DOI: http://dx.doi.org/10.17951/h.2015.49.4.621
Date of publication: 2016-01-28 11:03:52
Date of submission: 2015-07-13 12:41:10


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