자료실
자료실
[2014년 제 4차] Capital Gains Lock-In and Governance Choices
작성자 : 관리자
조회수 : 902
게시일 :
2014-12-12
Because of differences in accrued gains and investors’ tax-sensitivity, capital gains “lock-in” varies across mutual funds even for the same stock at the same time. Using this variation, we show that tax lock-in affects funds’ governance decisions. Higher tax lock-in decreases the likelihood a fund sells a stock prior to contentious votes, and increases the likelihood the fund votes against management. Consistent with tax motivations, these findings are concentrated among funds with tax-sensitive investors. High aggregate capital gains across funds holding a stock predicts a higher likelihood management loses a vote and a lower likelihood a contentious vote is proposed.