Please use this identifier to cite or link to this item:
https://hdl.handle.net/10356/105243
Title: | Capital gains lock-in and governance choices | Authors: | Dimmock, Stephen Geoffrey Gerken, William C. Ivković, Zoran Weisbenner, Scott J. |
Keywords: | Business::Finance Mutual Fund Proxy Voting |
Issue Date: | 2017 | Source: | Dimmock, S. G., Gerken, W. C., Ivković, Z., & Weisbenner, S. J. (2018). Capital gains lock-in and governance choices. Journal of Financial Economics, 127(1), 113-135. doi:10.1016/j.jfineco.2017.11.001 | Series/Report no.: | Journal of Financial Economics | Abstract: | Differences in accrued gains and investors’ tax-sensitivity induce variation in a capital gains lock-in effect across mutual funds even for the same stock at the same time. Exploiting this variation, we show this effect influences funds’ governance decisions: higher capital gains decrease the likelihood a fund exits prior to contentious votes and increase the likelihood a fund votes against management. Consistent with tax motivation, these findings are concentrated among funds with tax-sensitive investors. Further, high aggregate capital gains across funds holding a stock predict a higher likelihood management loses a vote and a lower likelihood a contentious vote is proposed. | URI: | https://hdl.handle.net/10356/105243 http://hdl.handle.net/10220/50312 |
ISSN: | 0304-405X | DOI: | 10.1016/j.jfineco.2017.11.001 | Schools: | Nanyang Business School | Rights: | © 2017 Elsevier B.V. All rights reserved. This paper was published in Journal of Financial Economics and is made available with permission of Elsevier B.V. | Fulltext Permission: | open | Fulltext Availability: | With Fulltext |
Appears in Collections: | NBS Journal Articles |
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Capital gains lock-in and governance choices.pdf | 450.57 kB | Adobe PDF | View/Open |
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