The past two decades have seen a rapid rise in large-scale, state-led transnational investment from countries as different as China, Norway and Russia. By bundling economic resources, these countries have entered global markets through massive state-led investments. This transformation of states...

We use a difference-in-differences approach, and find that, on average, SWF investments are negatively related to target firms’ corporate governance. This impact holds for small SWF cross-border equity investments only, and is stronger for firms that are weakly governed and for those located...