Did French stock markets support firms of the second industrial revolution?

Emilie Bonhoure and David Le Bris

Business History, 2021, vol. 63, issue 6, 914-943

Abstract: Investing in the Second-Industrial-Revolution (2IR) firms at the beginning of the 20th century exposed investors to strong information asymmetries due to the novelty of these industries and the lack of legal rules on transparency and public accounting. We analysed the firms listed in Paris at the start of the 2IR. Despite the strong informational asymmetries, the Paris financial markets did provide high valuation to firms involved in emerging activities as revealed by higher Tobin’s Q. This result holds when controlling for risk, liquidity, governance and nationality. Results on the dividend yield, nevertheless, do not confirm the support.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00076791.2019.1657409 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:bushst:v:63:y:2021:i:6:p:914-943

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FBSH20

DOI: 10.1080/00076791.2019.1657409

Access Statistics for this article

Business History is currently edited by Professor John Wilson and Professor Steven Toms

More articles in Business History from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().