IFSWF Report on Compliance with the Santiago Principles: Admirable but Flawed Transparency
Sarah Bagnall and Edwin M. Truman examine the International Forum of Sovereign Wealth Funds (IFSWF) report, which claims to be "a solid, initial step toward a better understanding of the IFSWF and of the Santiago Principles," and find this to be largely true, with a few limitations. The report, released July 7, 2011, is a self-assessment of the voluntary compliance of 21 member sovereign wealth funds (SWFs) with the Generally Accepted Principles and Practices of SWFs, issued in October 2008. Bagnall and Truman find that the extent of compliance with the Santiago Principles is somewhat exaggerated. In addition, some of the 21 funds have substantially lower rates of compliance than others, which is not reported. However, the report is frank about many of the issues that arise with respect to the interpretation of its results, for example regarding the application of the principles on investment policies and on nonfinancial restrictions on SWF investment decisions. Ultimately, presentation may obscure some results in the IFSWF report, but Bagnall and Truman find the report credible and admirable.
Taming Leviathan: Mitigating Political Interference in Sovereign Wealth Funds’ Public Equity Investments
Extant research finds that announcement-period abnormal returns of sovereign wealth fund (SWF) equity investments in publicly traded firms are positive but lower than those of comparable private investments. We investigate the determinants of this “SWF discount” and mitigating mechanisms. We find that the discount is deeper for domestic investments and for SWFs from non-democratic countries, suggesting it is caused by the threat of political interference. While SWFs from non-democratic countries experience larger discounts, lower profitability, and lower valuation when signaling an active stance (buying large stakes, acquiring control, and investing directly), the opposite is true for SWFs from democratic countries.
Household economy and gendered labor in the 17th centurya.d. on Guam
Abstract The gendered division of labor in household economies is well known in documentary accounts of many societies, although archaeological evidence for it is often elusive. Our study compares ethnohistorical accounts of household organization with archaeological patterns at a 17th-century village on the island of Guam in the Marianas archipelago to determine if these different sources of evidence provide similar insights. We investigated archaeological assemblages from two latte (megalithic) buildings to document their economic activities. Unexpected differences in their assemblages revealed that economic activities varied between the two latte buildings. They were domiciles of a single economically integrated household, but their disparate functions likely signaled a gendered division of labor. This study reveals aspects of gendered labor that documentary accounts do not fully describe. Our findings suggest that the assumption that domestic buildings were functionally redundant in traditional societies must be tested on a case-by-case basis.