Strong debates in the varieties of capitalism literature as to whether financial liberalization and internationalization undermine 'insider' corporate governance systems based on patient capital in coordinated and state-led market economies have focused on 'impatient' overseas private capital. However, cross-border state investment has also grown. We examine government policies towards a prominent type of state investment--equity purchases by sovereign wealth funds (SWFs). We argue that policymakers in 'insider' corporate governance systems can see such investment as an attractive international source of patient capital to offset declines in traditional sources of patient capital. We compare Germany and France and show that policymakers actively welcome SWF investment. Policy is driven by coalitions of 'insiders' of the managements of large industrial firms and governments who seek passive patient capital and beneficial relationships with overseas investors. Thus, financial liberalization and internationalization can allow new sources of patient capital through overseas state investors.

Overseas state outsiders as new sources of patient capital: government policies to welcome sovereign wealth fund investment in France and Germany / Thatcher, Mark; Vlandas, Tim. - In: SOCIO-ECONOMIC REVIEW. - ISSN 1475-1461. - 14:4(2016), pp. 647-668. [10.1093/ser/mww028]

Overseas state outsiders as new sources of patient capital: government policies to welcome sovereign wealth fund investment in France and Germany

Mark Thatcher;
2016

Abstract

Strong debates in the varieties of capitalism literature as to whether financial liberalization and internationalization undermine 'insider' corporate governance systems based on patient capital in coordinated and state-led market economies have focused on 'impatient' overseas private capital. However, cross-border state investment has also grown. We examine government policies towards a prominent type of state investment--equity purchases by sovereign wealth funds (SWFs). We argue that policymakers in 'insider' corporate governance systems can see such investment as an attractive international source of patient capital to offset declines in traditional sources of patient capital. We compare Germany and France and show that policymakers actively welcome SWF investment. Policy is driven by coalitions of 'insiders' of the managements of large industrial firms and governments who seek passive patient capital and beneficial relationships with overseas investors. Thus, financial liberalization and internationalization can allow new sources of patient capital through overseas state investors.
2016
sovereign wealth fund, corporate governance, patient capital, cross-border investments, varieties pf capitalsim
Overseas state outsiders as new sources of patient capital: government policies to welcome sovereign wealth fund investment in France and Germany / Thatcher, Mark; Vlandas, Tim. - In: SOCIO-ECONOMIC REVIEW. - ISSN 1475-1461. - 14:4(2016), pp. 647-668. [10.1093/ser/mww028]
File in questo prodotto:
File Dimensione Formato  
mww028.pdf

Solo gestori archivio

Tipologia: Versione dell'editore
Licenza: DRM (Digital rights management) non definiti
Dimensione 255.36 kB
Formato Adobe PDF
255.36 kB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/182739
Citazioni
  • Scopus 24
  • ???jsp.display-item.citation.isi??? 19
social impact