Abstract
Large corporations listed on organised stock exchanges were already becoming the norm globally before 1914. National approaches to controlling and fostering them differed from the later “varieties of capitalism” characterisation and had implications for national innovative capabilities and securities market size. Relations between investors (principals) and corporate directors (their agents) were influenced by networks of trust, as well as regulation by governments and by private order institutions like stock exchanges and investment banks.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Archives
London Guildhall Library, LSE Archives, MS 18000/1.
Primary published material and calendars
American Bell Telephone Company Limited. Annual Report 1886/7 (Boston: Bell, 1887).
Banker’s Magazine, no 779, August 1914.
Banker’s Magazine, no 869, August 1916.
Secondary Literature
Acheson, G. G., C. R. Hickson and J. D. Turner. ‘Does limited liability matter? Evidence from nineteenth-century British banking’, Review of Law and Economics, 6 (2011): 247–73.
Acheson, G. G, G. Campbell and J. D. Turner, “Common Law and the Origin of Shareholder Protection,” EABH papers, no 16–03 (August 2016).
Acs, Z. J and D. B. Audretsch. ‘An empirical examination of small firm growth’, Economics Letters, 25 (1985): 363–366.
Adler, D. R, British Investment in American Railways 1834–1898 (Charlottesville VA: University Press of Virginia, 1970).
Aldous, M. ‘Avoiding Negligence and Profusion: the Failure of the Joint-Stock Form in the Anglo-Indian Tea Trade, 1840–1870’, Enterprise and Society 16, 3 (2015): 648–85.
Annaert, J, F. Buelens and M. J. De Ceuster. ‘New Belgian stock market returns: 1832–1914’, Explorations in Economic History, 49 (2002): 189–204.
Anon. James Finlay & Co Ltd, 1750–1950 (Glasgow: Jackson, 1951).
Anon, “Vision and Reality”, Economist (12 September 2015).
Baker, W. J., A History of the Marconi Company (London: Methuen, 1970).
Bank, S. A., and B. R. Cheffins, ‘The Corporate Pyramid Fable’, Business History Review 84 (Autumn 2010): 435–458.
Bodenhorn, H, ‘Two Centuries of Finance and Growth in the United States, 1790–1980’, NBER Working Paper 22652 (2016).
Bonin, Hubert, Société Générale in the United Kingdom (Paris: Société Générale, 1996).
Brace, Harrison H. The Value of Organized Speculation (New York: Houghton Mifflin, 1913).
Burhop, Carsten, David Chambers and Brian Cheffins. ‘Regulating IPOs: Evidence from Going Public in London, 1900–1913.’ Explorations in Economic History, 51 (January 2014): 60–76.
Burhop, Carsten, David Chambers & Brian Cheffins, ‘Law, Politics and the Rise and Fall of German Stock Market Development, 1870–1938’, European Corporate Governance Institute (ECGI)–Law Working Paper No. 283 (2015).
Calomiris, C. W. “The Costs of Rejecting Universal Banking: American Finance in the German Mirror, 1870–1914,” In Coordination and Information: Historical Perspectives on the Organization of Enterprise, edited by N. R. Lamoreaux and D. M. G. Raff, 257–322. Chicago: Chicago University Press, 1995.
Chabot, B. R., and C. J. Kurz. ‘That’s Where the Money was: Foreign Bias and English Investment Abroad, 1866–1907’, Economic Journal 120 (2010), 1056–79.
Chambers, D. “Going public in interwar Britain.” Financial History Review 17 (2010), 51–71.
Chandler, A. D. Scale and Scope: The Dynamics of Industrial Capitalism. Cambridge, MA: Harvard University Press, 1990.
Cheffins, Brian R. Corporate Ownership and Control: British Business Transformed. Oxford: Oxford University Press, 2008.
Cheffins, Brian R, S. A. Bank and H. Wells ‘Shareholder Protection across Time’ University of Florida Law Review (forthcoming, 2017).
Cochrane, Sarah. ‘Explaining London’s Dominance in International Financial Services, 1870–1913’, University of Oxford Department of Economics working paper 455 (October 2009).
Cull, Robert, Lance Davis & Naomi Lamoreaux et al, ‘Historical financing of small- and medium-size enterprises’ Journal of Banking and Finance, Vol. 30, 11 (2006), 3017–3042.
Davis, L. ‘The Capital Markets and Industrial Concentration’ Economic History Review, 19, 1966, 255–72.
Davis, Lance and Larry Neal, ‘The evolution of the rules and regulations of the first emerging markets: the London, New York and Paris stock exchanges, 1792–1914’ Quarterly Review of Economics and Finance, Vol. 45 (2) (2005), 296–311.
De Long, J. B. ‘Did J.P. Morgan’s Men Add Value? An Economist’s Perspective on Financial Capitalism’ in Inside the Business Enterprise: Historical Perspectives on the Use of Information, edited by Peter Temin (Chicago: Chicago University Press, 1991), 205–36.
Dunning, John, Explaining International Production (New York: Routledge, 1988).
Edelstein, M. Overseas Investment in the Age of High Imperialism: The United Kingdom, 1850–1914 (London: Methuen, 1982).
Edwards, J. R. ‘Companies, Corporations and Accounting Change, 1835–1933: A Comparative Study’ Accounting and Business Research, 23, No. 89 (1992): 59–73.
Evans, G. H. British Corporation Finance 1775–1850: a study of preference shares (Baltimore: John Hopkins Press, 1936).
Fear, J and C. Kobrak, ‘Banks on Board: German and American Corporate Governance 1870–1914’, Business History Review 84 (Winter 2010), 703–736.
Franks J, C. Mayer and S. Rossi. ‘Ownership: Evolution and Regulation.’ Review of Financial Studies, 22, 10 (2009), 4009–4056.
Freeman, M, R. Pearson, and J. Taylor. Shareholder Democracies? Corporate Governance in Britain and Ireland before 1850 (Chicago: University of Chicago, 2012).
Friedman, Walter Fortune Tellers: The Story of Americas First Economic Forecasters (Princeton: Princeton University Press, 2015).
Foreman-Peck, James and Leslie Hannah, ‘UK Corporate Law and Corporate Governance before 1914: a Re-interpretation’, EHES Working paper in Economic History, no. 72 (2015).
Gallice, F., ‘Une banque française dans la City: le Crédit Lyonnais à Londres (1870–1918)’, Mémoire de DEA, Université de Paris X-Nanterre (1994).
Giesecke, Kay, Francis A. Longstaff, Stephen Schaefer, Ilya Strebulaev, ‘Corporate Bond Default Risk: A 150-Year Perspective’ NBER Working Paper No. 15848 (2010).
Goetzmann, W. N., and A. D. Ukhov, ‘British Investment Overseas 1870–1913: A Modern Portfolio Theory Approach’, Review of Finance, 10 (2006) 261–300.
Goldsmith, Raymond, Comparative national balance sheets: A study of twenty countries, 1688–1978 (Chicago: University of Chicago, 1985).
Goldsmith, Financial intermediaries in the American economy since 1900 (Princeton: Princeton University Press, 1958).
Grandy, C. ‘New Jersey Corporate Chartermongering, 1875–1929’, Journal of Economic History, 49 (1989), 677–92.
Grossman, R. and M. Imai. ‘Contingent capital and bank risk-taking among British banks before the First World War’, Economic History Review, 66, 1 (2013), 132–55.
Guinnane, T. W. T., R. Harris, N. Lamoreaux and J-L Rosenthal, ‘Contractual Freedom and the Evolution of Corporate Control in Britain, 1862 to 1929’, NBER Working Paper 20481 (2014).
Hall, Peter A and David Soskice, Varieties of Capitalism: The Institutional foundations of Comparative Advantage (Oxford: Oxford University Press, 2001).
Hannah, L, ‘London as the Global Market for Corporate Securities before 1914,’ in L. Quennouëlle‐Corre and Y. Cassis, eds. Financial Centres and International Capital Flows (Oxford: OUP, 2011), 126–60.
Hannah, L., ‘J. P. Morgan in London and New York before 1914’, Business History Review 85 (2011), 113–150.
Hannah, L, ‘Leading Stock Exchanges before 1914: Equities, Bonds and the Neglected Role of the State’, in K Sogner (ed.), Entreprenørskap. Festskrift til ære for Even Lange (Oslo: Novus Forlag, 2016), 13–28
Hilt, E. ‘When Did Ownership Separate from Control? Corporate Governance in the Early-Nineteenth Century’, Journal of Economic History, 68, 2008, 645–85.
Hilt, Eric and Carola Frydman ‘Investment Banks as Corporate Monitors in the Early Twentieth Century United States’, NBER Working Paper 20544 (2014).
Jefferys, J. B. Business Organisation in Great Britain 1856–1914 (New York: Garland, 1970).
Jones, G. G. The evolution of international business: an introduction (London: Routledge, 1996).
——–, and A. M. Colpan, ‘Business Groups in Historical Perspective’, in Colpan, T. Hikino and J. R. Lincoln, eds., Oxford Handbook of Business Groups (Oxford: Oxford University Press, 2012), 67–92.
Jones, G, ‘Business Groups exist in developed markets also: Britain since 1850’, Harvard Business School working paper 16-066 (2015).
Kennedy, W.P. Industrial Structure, Capital Markets and the Origins of British Industrial Decline (Cambridge: Cambridge University Press, 1987).
King, R., and R. Levine. ‘Finance and Growth: Schumpeter Might be Right’, Quarterly Journal of Economics, 103 (1993), 717–37.
Knight, F. H. Risk, Uncertainty, and Profit (Boston MA: Houghton Mifflin, 1921)
Kobrak, C. Banking on Global Markets: Deutsche Bank in the United States, 1870 to the present (Cambridge: Cambridge University Press, 2007).
——–, ‘The Concept of Reputation in Business History’, Business History Review 87 (Winter 2013), 763–786.
Lamoreaux, N, ‘Did insecure property rights slow economic development? Some Lessons from Economic History’, Journal of Policy History, 18, 1 (2006), 146–164.
Lamoreaux, N, M. Levenstein and K. Sokoloff. ‘Financing Innovation in the Second Industrial Revolution: Cleveland, Ohio, 1870–1920’ in Financing Innovation in the United States, 1870 to Present, Lamoreaux, K. Sokoloff, and W. H. Janeway, (eds.) (Cambridge MA: MIT Press, 2007).
La Porta, R. et al. ‘Law and Finance’, Journal of Political Economy, 106 (1998), 1113–55.
——–, ‘The Economic Consequences of Legal Origins’, Journal of Economic Literature, 46, 2008, 285–332.
Lavington, F, The English Capital Market (London: Methuen, 1921).
Lawson, Thomas W. Frenzied Finance (New York: Ridgway-Thayer, 1905).
Loughlan, T and J Ritter, ‘The New Issues Puzzle’, Journal of Finance, 50 (1995): 23–51.
Lowenfeld, Henry. Investment Practically Considered (London: Financial Review of Reviews, 1909).
McQueen, Rob. A Social History of Company Law: Great Britain and the Australian Colonies 1854–1920 (London: Ashgate, 2009).
Mahoney, P. G. ‘The Origins of the Blue‐Sky Laws: A Test of Competing Hypotheses’, Journal of Law and Economics, 46, 1 (April 2003), 229–251.
Margo, Robert & William J. Collins, Enterprising America: Business, Banks and Credit Markets in Historical Perspective (Chicago: Chicago University Press, 2015).
Michie, R C., ‘Options, Concessions, Syndicates, and the Provision of Venture Capital,1881–1913’, Business History, 25 (1981): 147–64.
———, ‘The Finance of innovation in Late Victorian and Edwardian Britain: Possibilities and Constraints’, Journal of European Economic History, 17, 3 (Winter 1988), 491–530.
Meeker, J. E. The Work of the Stock Exchange (New York: Ronald Press, 1922).
Moore, Lynden ‘World Financial Markets, 1900–1925’, Working Paper.
Musacchio, A and J. D. Turner, ‘Does the law and finance hypothesis pass the test of history?’ Business History 55 (2013) 524–42.
Nanda, Ramana and Matthew Rhodes-Kropf. ‘Financing Entrepreneurial Experimentation’, NBER Working Paper 21278 (June 2015).
Newton, Lucy. ‘Capital networks in the Sheffield region, 1850–1885’, in J. F. Wilson and A. Popp, eds., Industrial Clusters and Regional Business Networks in England, 1750–1970 (Aldershot: Ashgate, 2003), 130–154.
Neymarck, A, ‘La statistique internationale des valeurs mobilières,’ Bulletin de l’Institut International de Statistique, 14, (1905).
Nordhaus, W. D., ‘Schumpeterian Profits in the American Economy: Theory and Measurement’, NBER Working Paper 10433 (2004).
Nye, James G. D., ‘The Company Promoter in London 1877–1914’, University of London PhD thesis, 2011.
O’Sullivan, Mary A., ‘Yankee Doodle went to London: Anglo‐American breweries and the London securities market, 1888–92’, Economic History Review, Vol.68 (4) (November 2015), 1365–1387.
——–, “The Expansion of the U.S. Stock Market, 1885–1930: Historical Facts and Theoretical Fashions,” Enterprise & Society 3 (2007): 489–542.
Perotti, E. and E-L von Thadden. ‘The Political Economy of Corporate Control and Labor Rents,’ Journal of Political Economy, 114 (2006), 145–75.
Pier, A. S., Forbes: Telephone Pioneer (New York: Dodds Mead, 1953).
Pohl M. and K. Burk. Deutsche Bank in London 1873–1998 (Munich: Piper, 1998).
Powell, E. T, The Evolution of the Money Market (London: Cass, 1915).
Rajan, R. G. and L. Zingales. “The great reversals: the politics of financial development in the twentieth century.” Journal of Financial Economics 69 (2003), 5–50.
Roe, M. J, Strong Managers, Weak Owners (Princeton: Princeton University Press, 1992).
Rutterford, Janette, ‘The Shareholder Voice: British and American Accents, 1890 to 1965’ Enterprise & Society, 13, 1 (2012): 120–3.
——–, Dimitris P. Sotiropoulos and Carry van Lieshout, ‘Individual investors and local bias in the UK: 1870–1935’, Open University working paper 2015.
Scherer, F. M and D. Harhoff. ‘Technology policy for a world of skew-distributed outcomes’, Research Policy, 29 (2000): 559–566.
Seligman, J. The Transformation of Wall Street (Boston: Northeastern University Press, 1995).
Seltzer, Lawrence H. A Financial History of the American Automobile Industry (Boston: Houghton Mifflin, 1928).
Snowden, K. A. ‘American Stock Exchange Development and Performance, 1871–1929’ Explorations in Economic History, 24 (1987), 327–53.
Stehman, J. W. The Financial History of the American Telephone and Telegraph Company (Boston: Houghton Mifflin, 1925).
R. Sylla, ‘Schumpeter Redux: A Review of Raghuram G. Rajan and Luigi Zingales’s Saving Capitalism from the Capitalists’ Journal of Economic Literature, 44 (2006) 391–404.
———, Wall Street Transitions, 1880–1920: from National to World Financial Centre,” in L Quennouëlle-Corre and Y Cassis (eds.), Financial Centres and International Capital Flows (Oxford: Oxford University Press, 2011), 161–78.
Tosiello, R. J. The Birth and Early Years of the Bell Telephone System 1876–1880 (New York: Arno Press, 1979).
Taylor, James, Boardroom Scandal: The Criminalization of Company Fraud in Nineteenth-century Britain (Oxford: Oxford University Press, 2013).
Toms, Steven. “The Rise of Modern Accounting and the Fall of the Public Company: The Lancashire Cotton Mills, 1870–1914.” Accounting, Organizations and Society 27, 1 (2002): 61–84.
Vanderlip, F. A, From Farm Boy to Financier (New York: D. Appleton-Century Company Inc., 1935).
White, Eugene N. “Competition among the exchanges before the SEC: was the NYSE a natural hegemon?” Financial History Review, 20, 1 (2013): 29–48.
Wright, R. E, Corporation Nation (Philadelphia: University of Pennsylvania, 2014).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Hannah, L. (2017). Trust, Reputation and Regulation: Securities Markets in Europe, the USA, and Japan Before 1914. In: Pettigrew, W., Smith, D. (eds) A History of Socially Responsible Business, c.1600–1950. Palgrave Studies in the History of Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-60146-5_9
Download citation
DOI: https://doi.org/10.1007/978-3-319-60146-5_9
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-60145-8
Online ISBN: 978-3-319-60146-5
eBook Packages: Economics and FinanceEconomics and Finance (R0)