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

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Goergen, Marc
O'Sullivan, Noel
Wood, Geoffrey
Baric, Marijana
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2018
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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.

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Human Resource Management Journal

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28

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2

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© 2018 The Authors. Human Resource Management Journal Published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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Banking, finance and investment

Human resources and industrial relations

Psychology

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