The effect of sovereign wealth funds on corporations: Evidence of cash policies in Singapore

被引：1
|
作者：
Liu, Chenxi [1 ]
Yap, Nelson [2 ]
Yin, Chen [3 ]
Zhou, Sili [4 ,5 ]
机构：
[1] Nanjing Audit Univ, Nanjing, Peoples R China
[2] Govt Singapore Investment Corp, Technol Grp, Singapore, Singapore
[3] Fudan Univ, Sch Social Dev & Publ Policy, Room 1015,Liberal Arts Bldg,299 Guonian Rd, Shanghai, Peoples R China
[4] Fudan Univ, Fanhai Int Sch Finance, Room 520,5 Buliding 220 Handan Rd, Shanghai, Peoples R China
[5] Fudan Univ, Sch Econ, Room 520,5 Buliding 220 Handan Rd, Shanghai, Peoples R China
来源：
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE | 2021年 / 56卷
关键词：
Cash holdings; Sovereign wealth fund; Corporate governance; Temasek ownership; Corporate policy;
D O I：
10.1016/j.ribaf.2020.101354
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper studies the monitoring role of sovereign wealth funds (SWFs). By using unique dataset from one of the largest SWF: Temasek holdings, we find that SWF' s presence has a positive effect on cash holdings of portfolio companies. The effect is more pronounced for well-governed firms, indicating that Temasek increases corporate cash holdings through its active role in corporate governance. We further find supportive evidence that Temasek ownership affects cash holdings by hoarding excess cash and reducing capital expenditure, especially within firms with good governance. Temasek's discerning effect on cash policies highlights the effective monitoring role of sovereign wealth funds.
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页数：12
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