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Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928

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  • Richard S.Grossman

    () (Department of Economics, Wesleyan University)

Abstract

This paper presents data on quantity, capital gains, dividend, and total returns for domestic and overseas equities listed on the London Stock Exchange during 1869-1928. Indices are presented for Africa, Asia, Europe, Latin America, North America, Australia/New Zealand and for the finance, transportation, raw materials, and utilities sectors in each region. Returns and volatility were typically highest in emerging regions and the raw materials sector. Dividend yields were similar across regions and differences in total returns were due largely to disparities in capital gains. Returns of firms in more industrial markets were relatively highly correlated with each other and with developing regions with which they had substantial colonial or trade connections. Contingent liability was most extensively employed where leverage was high and the physical assets were either meager or inaccessible to creditors.

Suggested Citation

  • Richard S.Grossman, 2014. "Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869-1928," Wesleyan Economics Working Papers 2014-001, Wesleyan University, Department of Economics.
  • Handle: RePEc:wes:weswpa:2014-001
    as

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    File URL: http://repec.wesleyan.edu/pdf/rgrossman/2014001_grossman.pdf
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    References listed on IDEAS

    as
    1. Harvey, Campbell R, 1995. "Predictable Risk and Returns in Emerging Markets," Review of Financial Studies, Society for Financial Studies, vol. 8(3), pages 773-816.
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    5. Graeme G. Acheson & John D. Turner & Qing Ye, 2012. "The character and denomination of shares in the Victorian equity market," Economic History Review, Economic History Society, vol. 65(3), pages 862-886, August.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. And now for something a bit more academic
      by Richard S. Grossman in Unsettled Account on 2014-01-20 08:04:35
    2. “As in the modern world.” Foreign and Domestic Equities in the London Stock Exchange, 1869-1928
      by Manuel Bautista in NEP-HIS blog on 2014-02-20 17:41:48

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    Cited by:

    1. Rebecca Stuart, 2021. "Measuring stock market integration during the Gold Standard," IRENE Working Papers 21-01, IRENE Institute of Economic Research.

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