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Sovereign wealth funds, productivity and people: The impact of Norwegian government pension fund - global investments in the UK

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posted on 17.11.2017, 13:17 authored by Marc Goergen, Noel O'SullivanNoel O'Sullivan, Geoffrey Wood, Marijana Baric
Sovereign Wealth Funds (SWFs) 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 SWF, the Norwegian Government Pension Fund-Global (NGPF-G), on employment in its UK 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 organizations 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.

History

School

  • Business and Economics

Department

  • Business

Published in

Human Resource Management Journal

Volume

28

Issue

2

Pages

288 - 303

Citation

GOERGEN, M. ...et al., 2017. Sovereign wealth funds, productivity and people: The impact of Norwegian government pension fund - global investments in the UK. Human Resource Management Journal, 28(2), pp. 288-303.

Publisher

Wiley

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution 4.0 Unported Licence (CC BY 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by/4.0/

Acceptance date

25/10/2017

Publication date

2018-04-03

Notes

This is an Open Access Article. It is published by Wiley under the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/

ISSN

1748-8583

Language

en