Tag Archives: investment

Sovereign Wealth Fund Investment in Venture Capital, Private Equity, and Real Asset Funds

By | November 30, 2022

In a new paper, we show with a large sample of international data that sovereign wealth funds (SWFs) earn lower returns and are slower to fully liquidate their positions relative to other types of institutional investors. The data comprise 538 SWF investments in venture capital, private equity, and real asset funds from 52 countries from… Read More »

Finance without Law: The Case of China  

By | September 29, 2022

Can there be a highly developed financial market without the legal protection of investors and creditors? The law and finance literature is built on the premise that legal protection is essential to the development of a financial market. In the 17th century, for example, the English monarch was able to borrow money whereas his French… Read More »

The Pollution Premium

By | September 22, 2022

While industrial pollution is widespread in the modern world and affects everyone’s life, whether it influences the returns on stock investors is an important yet underexplored issue. In our recent paper, we attempt to examine why and how industrial pollution affects expected stock returns using both modeling and empirical approaches. Polluting firms may save costs… Read More »

Abnormal Investment and Firm Performance

By | September 15, 2022

In an efficient capital market, firms with better future growth options usually have higher equity valuation. To exercise these growth options, firms with a higher market valuation should have a lower payout ratio and invest more on projects with positive net present value (NPV). However, one study indicates a negative correlation between capital expenditures and… Read More »

Disclosure, Firm Growth, and the JOBS Act

By | July 28, 2021

Financing investment in future growth is an important motivation for firms to go public. Newly public firms fund investments mainly through public equity, and facilitate growth by building new capacity through capital expenditure(capex) and innovation, as well as by acquiring the assets of other firms. There is a longstanding policy debate on whether lowering the disclosure burden on public firms through regulation can facilitate such… Read More »

Green Urban Development: The Impact Investment Strategy of Canadian Pension Funds

By | June 16, 2021

With the global push toward sustainable investment, investors are concerned about whether the cost of investing green will result in lower portfolio returns in the long term. Are there win-win strategies where green investments can generate high returns alongside positive environmental impact? Our new paper, funded by the National Pension Hub at the Global Risk Institute,… Read More »