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Capitalism and the return on capital employed. Some further evidence

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  • Edwards, John Richard

Abstract

Return on capital employed is recognised both as a symbol of capitalism and as a calculation designed to help achieve the more effective deployment of available resources. Dating the emergence of this ‘accounting signature’ has been the subject of vigorous debate. Rob Bryer believes that calculation of the return on capital employed played a meaningful role in business life from the eighteenth century onwards whereas Steven Toms (2006, p. 206) finds scant evidence of the existence of this emblem of a capitalist mentality until ‘much later’. This paper seeks to contribute to this debate based on the contents of the Spencer Stanhope archive, Eighteenth Century Collections Online and UK Parliamentary Papers.

Suggested Citation

  • Edwards, John Richard, 2024. "Capitalism and the return on capital employed. Some further evidence," The British Accounting Review, Elsevier, vol. 56(6).
    • Handle: RePEc:eee:bracre:v:56:y:2024:i:6:s0890838924000209
    DOI: 10.1016/j.bar.2024.101320
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    References listed on IDEAS

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    1. Bryer, R. A., 2000. "The history of accounting and the transition to capitalism in England. Part one: theory," Accounting, Organizations and Society, Elsevier, vol. 25(2), pages 131-162, February.
    2. Edwards, John Richard & Dean, Graeme & Clarke, Frank, 2009. "Merchants' accounts, performance assessment and decision making in mercantilist Britain," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 551-570, July.
    3. Toms, J.S., 2010. "Calculating profit: A historical perspective on the development of capitalism," Accounting, Organizations and Society, Elsevier, vol. 35(2), pages 205-221, February.
    4. P. W. King, 2010. "Management, finance and cost control in the Midlands charcoal iron industry," Accounting History Review, Taylor & Francis Journals, vol. 20(3), pages 385-412.
    5. G. Hammersley, 1973. "The Charcoal Iron Industry and its Fuel, 1540–1750," Economic History Review, Economic History Society, vol. 26(4), pages 593-613, November.
    6. Bryer, R. A., 2005. "A Marxist accounting history of the British industrial revolution: a review of evidence and suggestions for research," Accounting, Organizations and Society, Elsevier, vol. 30(1), pages 25-65, January.
    7. John Richard Edwards, 2011. "Accounting education in Britain during the early modern period," Accounting History Review, Taylor & Francis Journals, vol. 21(1), pages 37-67.
    8. Eve Chiapello, 2007. "Accounting and the birth of the notion of capitalism," Post-Print hal-00466515, HAL.
    9. Bryer, R. A., 2000. "The history of accounting and the transition to capitalism in England. Part two: evidence," Accounting, Organizations and Society, Elsevier, vol. 25(4-5), pages 327-381, May.
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