The character and denomination of shares in the Victorian equity market1

Datos Bibliográficos

ID3442191
AutoresGraeme G Acheson, Graeme Acheson (0000-0001-7531-2082, University of Ulster), John D Turner (0000-0001-8543-4374, Queen's University Belfast), Qing Ye (0009-0009-7402-1182, Queen's University Belfast)
Año2012
Volumen65
Número3
Páginas862-886
Fecha de publicación2012-08-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic History Review (JOURNAL)
Identificadores de la revistaISSN: 0013-0117 • E-ISSN: 1468-0289
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0289.2011.00618.x
OpenAlexW1496961224
IdiomaEN
Citas recibidas14
Referencias citadas51

The seminal work of J. B. Jefferys highlighted two unusual features of the Victorian equity market, namely high share denomination and uncalled capital. This article examines the extent to which publicly traded company stocks in the nineteenth century had these features. It also analyses the effect of these features on stock returns using monthly data for the London Stock Market over the period 1825-70. We find that stocks with unpaid capital earned a higher return, which is consistent with investors being rewarded for the risk of a call on their personal assets. We also find that stocks with a high share denomination earned a lower return, which is consistent with the view that this feature was conducive to superior corporate governance

Business · Corporate governance · Economics · Equity (law) · Financial economics · Monetary economics · Political science · Return on equity · Stock (firearms) · Stock exchange · Stock market · Corporate Finance and Governance · Finance · Financial Markets and Investment Strategies · Financial Reporting and Valuation Research · Law