Accessing Capital Markets: Aristocrats and New Share Issues in the Cycle and Pneumatic Tyre Industries, 1892-1898

32 Pages Posted: 25 Apr 2016

See all articles by Shima Amini

Shima Amini

University of Leeds; University of Leeds - Division of Accounting and Finance

Lei Lei

Independent

Steve Toms

University of Leeds - Leeds University Business School (LUBS); University of Leeds - Division of Accounting and Finance

Date Written: April 25, 2016

Abstract

The paper reconsiders the boom of the mid 1890s in which a large number of firms in the bicycle, vehicle and pneumatic tyre industries were floated. It investigates why so many of these issues featured aristocratic directors listed in their prospectuses and finds that they exemplified City connections that were a necessary condition for industrial firms located in the regions to access the London equity market. The case shows that the role and value of these directors was to access to capital markets and financial resources, as much as to signal the quality or otherwise of the issues from a market pricing point of view.

Keywords: Cycle, pneumatic tyres, initial public offerings, elite directors, aristocracy, United Kingdom

JEL Classification: G31, G34, N13, N23, N73, N83

Suggested Citation

Amini, Shima and Lei, Lei and Toms, Steve, Accessing Capital Markets: Aristocrats and New Share Issues in the Cycle and Pneumatic Tyre Industries, 1892-1898 (April 25, 2016). Leeds University Business School Working Paper No. 16-10. Available at SSRN: https://ssrn.com/abstract=2769908 or http://dx.doi.org/10.2139/ssrn.2769908

Shima Amini

University of Leeds ( email )

Leeds, LS2 9JT
United Kingdom

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

Lei Lei

Independent

No Address Available

Steve Toms (Contact Author)

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

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