A New Reputational Paradigm for the Financial Industry? Insights from Chinese Sovereign Wealth Funds doing Business in Europe
Type
conference paper
Date Issued
2008-05-29
Author(s)
Abstract
Perception is reality, an insight that Chinese state-owned investment funds had to learn the hard way in Europe during the last few years. With their enormous financial means (China is said to have accumulated more monetary reserves in the last years than any other nation state, growing every month by 20 billion $), it is not surprising that European politicians and lawmakers are discussing whether to protect key industries from the influence of state investors from emerging economies. China Investment Corporate Ltd alone, the largest state owned investment vehicle, has 200 billion $ at its disposal, making it one of the world's most important financial investors. Although, according to its management, this and other state funds operate free from governmental control and are interested in long-term, minority investments in European and American companies, there are widespread resentments.
As long as the proponents of state funds do not become more transparent and proactive communicators, a shift in this perception seems not to happen in the foreseeable future, effectively shutting of investment opportunities for Chinese investors. The current culture of obscurity might thus be detrimental to business outcomes in the long term. Rather, within the current context of public and journalistic incomprehension for state investors, measures are necessary in order to better manage their reputation. The question that our research paper investigates is therefore whether such investment funds should manage their reputation in the first place and what measures could be undertaken to become more reputable to the public and to the media.
As long as the proponents of state funds do not become more transparent and proactive communicators, a shift in this perception seems not to happen in the foreseeable future, effectively shutting of investment opportunities for Chinese investors. The current culture of obscurity might thus be detrimental to business outcomes in the long term. Rather, within the current context of public and journalistic incomprehension for state investors, measures are necessary in order to better manage their reputation. The question that our research paper investigates is therefore whether such investment funds should manage their reputation in the first place and what measures could be undertaken to become more reputable to the public and to the media.
Language
English
Keywords
Reputation
Sovereign-Wealth Funds
Communications Management
HSG Classification
contribution to scientific community
Refereed
Yes
Event Title
12th International Conference on Corporate Reputation, Brand, Identity and Competitiveness
Event Location
Beijing
Event Date
26.05.-01.06.2008
Subject(s)
Division(s)
Eprints ID
43722