Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

 
 
Session Overview
Session
Track M3-4: Risk and Information in Institutional Investing
Time:
Monday, 20/May/2024:
11:30am - 12:15pm

Session Chair: Christian Opp, University of Rochester
Discussant: Shuaiyu Chen, Purdue University
Location: Room 1216


Presentations

(Re)call of Duty: Mutual Fund Securities Lending and Proxy Voting

Tao Li1, Qifei Zhu2

1University of Florida; 2Nanyang Technological University

Taking advantage of a novel dataset on individual mutual funds' securities lending activities, we provide the first systematic evidence that mutual funds, especially ESG funds, recall loaned shares prior to voting record dates. Funds' recall-voting sensitivities differ based on their stated lending policies, ownership stakes in portfolio firms, and holding horizons, indicating heterogeneity in funds' perceived values of voting rights. Recalled shares are more likely to be voted against management proposals, and in favor of shareholder proposals and dissident slates in proxy contests. Recall-sensitive funds attract higher fund flows and do not suffer poor performance because of foregone lending revenues.


Li-(Re)call of Duty-1466.pdf