Jump to ContentJump to Main Navigation
Financial Elites and European BankingHistorical Perspectives$
Users without a subscription are not able to see the full content.

Youssef Cassis and Giuseppe Telesca

Print publication date: 2018

Print ISBN-13: 9780198782797

Published to Oxford Scholarship Online: September 2018

DOI: 10.1093/oso/9780198782797.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 06 March 2021

Trust and Regulation in Corporate Capital Markets before 1914

Trust and Regulation in Corporate Capital Markets before 1914

(p.134) 6 Trust and Regulation in Corporate Capital Markets before 1914
Financial Elites and European Banking

Leslie Hannah

Oxford University Press

Historians have struggled to explain how stock markets could develop—with notable vigour in many countries before 1914—before modern shareholder protections were legally mandated. Trust networks among local elites—and/or information signalling to public investors—substituted for legal regulation, but this chapter suggests real limits to such processes. They are especially implausible when applied to giant companies with ownership substantially divorced from control, of which there were many with—nationally and internationally—dispersed shareholdings. In London—the largest pre-1914 securities market—strong supplementary supports for market development were provided by mandatory requirements for transparency and anti-director rights in UK statutory companies and by low new issue fees. There were also stringent London Stock Exchange requirements for other companies wanting the liquidity benefits of official listing. Shareholder rights were similarly achieved in Brazil and other countries and colonies dependent on British capital.

Keywords:   corporate governance, investment banks, stockbrokers, stock exchanges, trust

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .