The merchant banker, the broker and the Company chairman: a new issue case study
AbstractThis paper explores the roles of a merchant banker, Everard Hambro, and the chairmen of two companies, Thames Iron and Trollope, Colls & Co., in the restructuring of their companies at the beginning of the twentieth century. Their correspondence provides evidence that the choice of corporate capital structure had little to do with company needs or risk characteristics. Instead, Hambro, in concert with stockbrokers, concentrated on legal issues and on ensuring that the securities issued conformed in amount, type and price to market norms, including the avoidance of stock watering. The company chairmen concentrated on ensuring that they retained control and that the new issues were deemed a success.
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Bibliographic InfoPaper provided by EconWPA in its series Economic History with number 0503016.
Length: 23 pages
Date of creation: 24 Mar 2005
Date of revision:
Note: Type of Document - pdf; pages: 23. in « L’entreprise, le chiffre et le droit », éditeurs J.G. Degos et S. Trébucq, Bordeaux (2005), pp. 305-327.
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Corporate finance; stock watering; underwriting; new issues;
Find related papers by JEL classification:
- N - Economic History
This paper has been announced in the following NEP Reports:
- NEP-ACC-2005-04-16 (Accounting & Auditing)
- NEP-ALL-2005-04-16 (All new papers)
- NEP-HIS-2005-04-16 (Business, Economic & Financial History)
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