Sovereign Wealth Fund Investment Decisions: Temasek Holdings

Posted: 5 Feb 2012

See all articles by Richard Heaney

Richard Heaney

Australian National University

Lary Li

RMIT University - School of Economics, Finance and Marketing; Financial Research Network (FIRN)

Vicar Valencia

affiliation not provided to SSRN

Date Written: April 8, 2012

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 behavior 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.

Keywords: sovereign wealth fund, Temasek

Suggested Citation

Heaney, Richard and Li, Larry and Valencia, Vicar, Sovereign Wealth Fund Investment Decisions: Temasek Holdings (April 8, 2012). Australian Journal of Management, Vol. 36, No. 1, 2011, Available at SSRN: https://ssrn.com/abstract=1998745

Richard Heaney

Australian National University ( email )

Canberra, Australian Capital Territory 0200
Australia
(+61) 6 2494726 (Phone)
(+61) 6 2495005 (Fax)

Larry Li (Contact Author)

RMIT University - School of Economics, Finance and Marketing ( email )

Business
Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Vicar Valencia

affiliation not provided to SSRN ( email )

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