Target firms’ characteristics and the effects of sovereign wealth funds’ investments: Does cultural context of SWFs matter?

This paper investigates whether the determinants and effects of sovereign wealth fund (SWF) investments vary across SWFs' countries of origin. We classify SWFs based on the national culture of their home countries. On the side of investment motives, our findings show different nuances across SWFs classified by cultural origins. Furthermore, the post-investment approach varies among SWFs distinguished on the basis of the cultural traits of their home country. As a whole, these findings confirm that the heterogeneity of the cultural origin of SWFs matters in terms of selection criteria and effects.