TY - GEN digital ID - 131456623 TI - Capital Gains Lock-In and Governance Choices AU - Dimmock, Stephen G. AU - Gerken, William C. AU - Ivković, Zoran AU - Weisbenner, Scott J. PY - 2014 PB - Cambridge, Mass. National Bureau of Economic Research DB - UniCat KW - Zonder onderwerpscode: economie UR - https://www.unicat.be/uniCat?func=search&query=sysid:131456623 AB - 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. ER -