SWF investments and debt maturity of target firms: An international evidence

Hatem H. Ghouma and Zeineb Ouni

Finance Research Letters, 2022, vol. 46, issue PA

Abstract: Using a sample of bonds issued by firms acquired by sovereign wealth funds (SWFs), we find a negative relationship between SWFs ownership and maturities of the bonds issued by their target firms. This deterioration in the bond contracting terms supports the political agenda hypothesis suggesting that SWFs, because of their superior information and non-value maximizing agenda, could represent a threat to bondholders and hence exacerbates the agency problem.

Keywords: Sovereign wealth fund; Bond maturity (search for similar items in EconPapers)
JEL-codes: G15 G32 G34 G38 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321003421

DOI: 10.1016/j.frl.2021.102312

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