The Berlin Stock Exchange in Imperial Germany: A Market for New Technology?

Sibylle Lehmann-Hasemeyer and Jochen Streb

American Economic Review, 2016, vol. 106, issue 11, 3558-76

Abstract: Analyzing 474 cases of firms going public in the German capital between 1892 and 1913, we show that innovative firms could rely on the Berlin stock market as a source of financing. Our data also reveal that initial public offerings (IPO) of innovative firms were characterized by particularly low underpricing, comparatively high first trading prices, and no long-run underperformance. We interpret these empirical results as evidence for the surprising fact that in the period of the Second Industrial Revolution the Berlin stock exchange was already a well-functioning market for new technology.

JEL-codes: G14 G21 G24 G32 N23 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.20150626
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Citations: View citations in EconPapers (23)

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