Rentier capitalism and the equity market: shareholders in Victorian public companies

"Using data on 453 firm-years and over 172,000 shareholders, this paper examines who invested in the equities of companies created during the substantial expansion of the British equity market in the second half of the nineteenth century. It also analyses whether there were clientele effects, where particular types of stocks and companies were more attractive to certain types of investors. Over the entire sample, we find that gentlemen capitalists and women rentiers provided circa 60 per cent of capital and constituted about 60 per cent of investors. We also find that there was a substantial growth in women investors over the century. In terms of clientele effects, we find that the upper classes were more likely to invest in large, London-based firms. However, businessmen provided more capital for domestic, family firms, based in the regions. Women investors exhibited a preference for equities which paid a dividend and which were relatively safe. "