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Short-term impact of sovereign wealth funds investment announcements on listed target firms: Evidence from 20 largest SWF's (2008-2017)

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  1. Tez No: 520227
  2. Yazar: OĞUZ KAHRAMAN
  3. Danışmanlar: Dr. PATRICIA NTOZI-OBWALE
  4. Tez Türü: Yüksek Lisans
  5. Konular: Maliye, Finance
  6. Anahtar Kelimeler: Sovereign Wealth Funds, abnormal returns, cumulative abnormal returns, investment, performance, stock prices, event study, multiple regression
  7. Yıl: 2017
  8. Dil: İngilizce
  9. Üniversite: University of Greenwich
  10. Enstitü: Yurtdışı Enstitü
  11. Ana Bilim Dalı: Belirtilmemiş.
  12. Bilim Dalı: Belirtilmemiş.
  13. Sayfa Sayısı: 90

Özet

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Özet (Çeviri)

Sovereign Wealth Funds became integral part of financial world in recent years. SWFs are state owned investment funds who gain their assets from commodity resource surpluses or direct transfer of official foreign exchange reserves (Butt et al., 2008). SWFs have started to gain attention by economists in the last years. However, existing literature is not enough to fully understand their effect on financial world. This is why this dissertation focuses on SWFs and their performance. This dissertation tries to show impact of SWF investments on target firms by using stock prices and the firm values. In detail, this dissertation shows short-term stock price performance of firms after SWFs make investment announcements in 1-day and 5-day event windows. Event study and multiple regression methods are employed. Multiple regression is used to show characteristics which affect the cumulative abnormal returns (CAR). The sample consists of 40 SWF announcements which taken place between 2008-2017. The results suggest that SWF investments create positive abnormal returns for 1-day event window and negative abnormal returns for 5-day event window. The positive abnormal return is 0.83% and negative abnormal return is -0.14%. These results were tested by both parametric and non-parametric tests. Both found significant. Regression results for 1-day event window CAR shows that intercept, leverage, ROA, domestic firm, LM transparency and OECDtarget are significant. Leverage, ROA, domesticfirm and OECDtarget variables are negatively related with CAR, Intercept and LMtransparency are positively related with CAR in 1-day event window. 5-day CAR is affected by intercept, firmsize, leverage, domesticfirm and OECDtarget variables are significant. Intercept, leverage, domesticfirm and OECDtarget variables have positive relationship with CAR for 5-day event window. Only firmsize is negatively correlated.

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