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Sovereign wealth funds, productivity and people: The impact of Norwegian Government Pension Fund-Global investments in the United Kingdom

Goergen, Marc and O'Sullivan, Noel and Wood, Geoffrey and Baric, Marijana (2018) 'Sovereign wealth funds, productivity and people: The impact of Norwegian Government Pension Fund-Global investments in the United Kingdom.' Human Resource Management Journal, 28 (2). 288 - 303. ISSN 0954-5395

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Abstract

Sovereign wealth funds have an increasing presence in the global financial ecosystem, principally through their investments in equities, which, in turn, may influence HRM. This study examines the influence of the world's largest sovereign wealth fund, the Norwegian Government Pension Fund‐Global (NGPF‐G), on employment in its U.K. investee firms. We find that firms with NGPF‐G investment are significantly less likely to reduce their demand for labour, more specifically in the immediate aftermath of the 2008 financial crisis. When a drop in the demand for labour does occur, it is less extreme when compared to similar organisations without a NGPF‐G shareholding, and this is evident even in the case of relatively small NGPF‐G investments. These findings are in line with the fund's objective of promoting corporate sustainability and Norwegian values. We draw out the key implications of our findings for HR practice.

Item Type: Article
Uncontrolled Keywords: alternative investors, downsizing, Norway, Norwegian Government Pension Fund ‐ Global (NGPF ‐ G), sovereign wealth fund (SWF), sustainability
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 02 Oct 2018 10:17
Last Modified: 02 Oct 2018 10:17
URI: http://repository.essex.ac.uk/id/eprint/23183

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