Analysis on the participation of the main sovereign wealth funds in European listed companies

Abstract

The aim of this study is to conduct an analysis of the investment made by the fifteen largest sovereign wealth funds on listed European companies. The analysis is divided into two sections: a descriptive one and a statistical one. The methodology used for this purpose consisted of mining data from Orbis database and running a binomial logistic regression. The main results show that, in the first place, the Norwegian fund is the one that invests in a larger amount of companies and European countries. Another significant result indicates that the United Kingdom is the country that receives the most investment. Finally, the results lead also to the conclusion that, concerning investing, sovereign wealth funds are influenced by a set of factors such as company size, profitability, and leverage, whereas the company’s home country and the economic sector it belongs are not determining factors.

Keywords

• sovereign wealth funds
• investment
• listed european companies
• binomial logistic regression