Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 22, 2023 erstellt
Beschreibung:
We study passive funds' conflicts of interest by examining their securities lending decisions. We show that passive funds' lending varies with the costs of lending for their families. Passive funds are less likely to lend a security if (i) active funds in their families have a sizable stake in the security or (ii) their families have business relationships with the security's issuer. The effect of these costs is especially strong among funds with in-house lending agents that retain a high fraction of lending fees. The findings indicate that passive funds trade off maximizing investor returns with maximizing fund family value