Hostname: page-component-586b7cd67f-vdxz6 Total loading time: 0 Render date: 2024-11-29T10:22:51.209Z Has data issue: false hasContentIssue false
  • English
  • Français

From Complementary to Competitive: The London and U.K. Provincial Stock Markets

Published online by Cambridge University Press:  24 March 2020

Meeghan Rogers ,
Gareth Campbell  and
John Turner
Meeghan Rogers
Affiliation:
Assistant Professor at Farmingdale State College, 2350 Broadhollow Road, Farmingdale, NY11735. E-mail: [email protected].
Gareth Campbell
Affiliation:
Professor at Queen’s UniversityBelfast, BT7 1NN. E-mail: [email protected].
John Turner
Affiliation:
Professor at Queen’s UniversityBelfast, BT7 1NN. E-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

For many decades, there were stock exchanges operating in provincial cities across Britain. We analyze why companies listed on these markets and how this changed over time. We find that the provincial exchanges had traditionally been complementary to London, providing a trading venue for smaller regional companies. However, they gradually lost their uniqueness and were increasingly competing with London by listing similar stocks. Much of this change can be explained by shifts in industrial composition, leading to more companies being headquartered and listed in the capital and many of the remaining regional firms cross-listing in London to achieve certification.

Type
Article
Information
The Journal of Economic History , Volume 80 , Issue 2 , June 2020 , pp. 501 - 530
Copyright
© The Economic History Association 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Acheson, Graeme G., Campbell, Gareth, and Turner, John D.. “Private Contracting, Law and Finance.” Review of Financial Studies 32, no. 11 (2019): 4156–95.CrossRefGoogle Scholar
Acheson, Graeme G., and Turner, John D.. “Investor Behavior in a Nascent Capital Market: Scottish Bank Shareholders in the Nineteenth Century.” Economic History Review 64, no. 1 (2011): 188–213.CrossRefGoogle Scholar
Arnold, Tom, Philip Hersch, J.Mulherin, Harold, and Netter, Jeffry. “Merging Markets.” Journal of Finance 54, no. 3 (1999): 1083–107.CrossRefGoogle Scholar
Balderston, Theo. “The Economics of Abundance: Coal and Cotton in Lancashire and the World.” Economic History Review 63, no. 3 (2010): 569–80.CrossRefGoogle ScholarPubMed
Bekaert, Geert, Harvey, Campbell R., and Lundblad, Christian. “Liquidity and Expected Returns: Lessons from Emerging Markets.” Review of Financial Studies 20, no. 6 (2007): 1783–831.CrossRefGoogle Scholar
Broadberry, Stephen, and Marrison, Andrew. “External Economies of Scale in the Lancashire Cotton Industry.” Economic History Review 55, no. 1 (2002): 51–77.CrossRefGoogle Scholar
Broadbridge, S. A. “The Sources of Railway Share Capital.” In Railways in the Victorian Economy: Studies in Finance and Economic Growth, edited by Reed, M. C., 184–211. New York: Augustus M. Kelley, 1968.Google Scholar
Brown, William, Harold Mulherin, J., and Weidenmier, Marc D.. “Competing with the New York Stock Exchange.” Quarterly Journal of Economics 123, no. 4 (2008): 1679–719.CrossRefGoogle Scholar
Burhop, Carsten, Chambers, David, and Cheffins, Brian. “Regulating IPOs: Evidence from Going Public in London, 1900–1913.” Explorations in Economic History 51, no. 1 (2014): 60–76.CrossRefGoogle Scholar
Burhop, Carsten, and Lehmann-Hasemeyer, Sybille. “The Berlin Stock Exchange and the Geography of German Stock Markets in 1913.” European Review of Economic History 20, no. 4 (2016): 429–51.CrossRefGoogle Scholar
Campbell, Gareth, Grossman, Richard S., and Turner, John D.. “Before the Cult of Equity: New Monthly Indices of the British Share Market, 1829–1929.” CEPR Discussion Paper Series No. DP13717, Centre for Economic Policy Research, London, 2019.Google Scholar
Campbell, Gareth, Rogers, Meeghan, and Turner, John. “From Complementary to Competitive: The London and UK Provincial Stock Markets.” Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-10. https://doi.org/10.3886/E112281V1.Google Scholar
Campbell, Gareth, and Turner, John D.. “Dispelling the Myth of the Naive Investor during the Railway ‘Mania’ Boom in Britain, 1845–46.” Business History Review 86, no. 1 (2012): 3–41.CrossRefGoogle Scholar
Campbell, Gareth, Turner, John D., and Ye, Qing. “The Liquidity of the London Capital Markets, 1825–1870.” Economic History Review 71, no. 3 (2018): 823–52.CrossRefGoogle Scholar
Chabot, Benjamin R., and Kurz, Christopher J.. “That’s Where the Money Was: Foreign Bias and English Investment Abroad, 1866–1907.” Economic Journal 120, no. 1 (2010): 1056–79.CrossRefGoogle Scholar
Chambers, David, and Dimson, Elroy. “IPO Underpricing over the Very Long Run.” Journal of Finance 64, no. 3 (2009): 1407–43.CrossRefGoogle Scholar
Cheffins, Brian, Koustas, Dimitri, and Chambers, David. “Ownership Dispersion and the London Stock Exchange’s ‘Two-Thirds Rule’: An Empirical Test.” Business History 55, no. 4 (2013): 670–93.CrossRefGoogle Scholar
Coval, Joshua D., and Moskowitz, Tobias J.. “Home Bias at Home: Local Equity in Domestic Portfolios.” Journal of Finance 54, no. 6 (1999): 2045–73.CrossRefGoogle Scholar
Crafts, Nicholas, and Leunig, Timothy. “Transport Improvements, Agglomeration Economies and City Productivity: At What Point Did Nineteenth Century Transport Raise British Wages.” LSE mimeo, 2014.Google Scholar
Crafts, Nicholas, and Wolf, Nikolaus. “The Location of the UK Cotton Textiles Industry in 1838: A Quantitative Analysis.” Journal of Economic History 74, no. 4 (2014): 1103–39.CrossRefGoogle Scholar
Edelstein, Michael. Overseas Investment in the Age of High Imperialism: The United Kingdom, 1850–1914. New York: Columbia University Press, 1982.Google Scholar
Gaspar, Jose-Miguel, and Massa, Massimo. “Local Ownership as Private Information: Evidence on the Monitoring-Liquidity Trade-Off.” Journal of Financial Economics 83, no. 3 (2007): 751–92.CrossRefGoogle Scholar
Goetzmann, William N., and Ukhov, Andrey D.. “British Investment Overseas 1870–1913: A Modern Portfolio Theory Approach.” Review of Finance 10, no. 2 (2006): 261–300.CrossRefGoogle Scholar
Gore-Browne, Francis. A Handy Book on the Formation, Management and Winding Up of Joint Stock Companies. 24th ed. London: Jordan & Sons, Limited, 1902.Google Scholar
Goyenko, Ruslan Y., and Ukhov, Andrey D.. “Stock and Bond Market Liquidity: A Long-Run Empirical Analysis.” Journal of Financial and Quantitative Analysis 44, no. 1 (2009): 189–212.CrossRefGoogle Scholar
Grossman, Richard S. “Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1869–1928.” Economic History Review 68, no. 2 (2015): 471–521.CrossRefGoogle Scholar
Hannah, Leslie. “The ‘Divorce’ of Ownership from Control from 1900 Onwards: Re-Calibrating Imagined Global Trends.” Business History 49, no. 4 (2007): 404–38.CrossRefGoogle Scholar
Hannah, Leslie. “The London Stock Exchange, 1869–1929: New Statistics for Old?” Economic History Review 71, no. 4 (2018): 1349–56.CrossRefGoogle Scholar
Hautcoeur, Pierre-Cyrille, and Riva, Angelo. “The Paris Financial Market in the Nineteenth Century: Complementarities and Competition in Microstructures.” Economic History Review 65, no. 4 (2012): 1326–53.CrossRefGoogle Scholar
Kennedy, William P.Industrial Structure, Capital Markets and the Origins of British Economic Decline. Cambridge: Cambridge University Press, 1987.Google Scholar
Killick, J. R., and Thomas, W. A.. “The Provincial Stock Exchanges, 1830–1870.” Economic History Review 23, no. 1 (1970): 96–111.Google Scholar
Lavington, F.The English Capital Market. London: Routledge, 1921.Google Scholar
Lowenfeld, Henry. Investment: An Exact Science. London: The Financial Review of Reviews, 1909.Google Scholar
Melsheimer, Rudolph Eyre, and Laurence, Walter. The Law and Customs of the London Stock Exchange. London: Sweet and Maxwell, 1879, 1884, and 1905.Google Scholar
Michie, Ranald C. “The London Stock Exchange and the British Securities Market 1850–1914.” Economic History Review 38, no. 1 (1985): 61–82.Google Scholar
Michie, Ranald C. “London and the Process of Economic Growth since 1750.” London Journal 22, no. 1 (1997): 63–90.CrossRefGoogle Scholar
Michie, Ranald C.The London Stock Exchange: A History. Oxford: Oxford University Press, 2001.CrossRefGoogle Scholar
Mollan, Simon, and Michie, Ranald C.. “The City of London as an International Commercial and Financial Center since 1900.” Enterprise and Society 13, no. 3 (2012): 538–87.CrossRefGoogle Scholar
Morgan, E. Victor, and Thomas, W. A.. The Stock Exchange: Its History and Functions. London: Elek Books, 1962.Google Scholar
Newton, Lucy A. “The Birth of Joint-Stock Banking: England and New England Compared.” Business History Review 84, no. 1 (2010): 27–52.CrossRefGoogle Scholar
O’Sullivan, Mary. “The Expansion of the U.S. Stock Market, 1885–1930: Historical Facts and Theoretical Fashions.” Enterprise and Society 8, no. 3 (2007): 489–542.Google Scholar
Pollard, Sidney. “Capital Exports, 1870–1914: Harmful or Beneficial?” Economic History Review 38, no. 4 (1985): 489–514.Google Scholar
Reed, M. C. “Railways and the Growth of the Capital Market.” In Railways in the Victorian Economy: Studies in Finance and Economic Growth, edited by Reed, M. C., 162–83. New York: Augustus M. Kelley, 1968.Google Scholar
Reed, M. C. Investment in Railways in Britain 1820–1844: A Study in the Development of the Capital Market. Oxford: Clarendon Press, 1975.Google Scholar
Report of the Company Law Committee (Jenkins Committee). Presented to Parliament by the President of the Board of Trade by Command of Her Majesty. London: Board of Trade, 1962.Google Scholar
Scott, Peter. “The Location of Early Overseas Multinationals in Britain, 1900–1939: Patterns and Determinants.” Regional Studies 32, no. 6 (1998): 489–501.CrossRefGoogle Scholar
Stock Exchange Yearbook, various issues.Google Scholar
Sykes, Joseph. The Amalgamation Movement in English Banking, 1825–1924. London: P.S. King & Son, 1926.Google Scholar
Times, The. The Times Book of Prospectuses, London, 1900.Google Scholar
Thomas, W. A.The Provincial Stock Exchanges. London: Frank Cass, 1973.Google Scholar
Thomas, W. A. “The Evolution of a Capital Market: The Case of Ireland.” Journal of European Economic History 16, no. 3 (1987): 527–60.Google Scholar
Turner, John D. “Wider Share Ownership?: Investors in English Bank Shares in the Nineteenth Century.” Economic History Review 62, no. 1 (2009): 167–92.CrossRefGoogle Scholar
White, Eugene N. “Competition among the Exchanges before the SEC: Was the NYSE a Natural Hegemon?” Financial History Review 20, no. 1 (2013): 29–48.CrossRefGoogle Scholar
World Federation of Exchanges. Annual Statistics Guide. London: WFE Statistics Team, 2019.Google Scholar