The economic benefits of political connections in late Victorian Britain

F. Braggion, L. Moore

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The late Victorian era was characterized by close links between politicians and firms in the United Kingdom, with up to half of all members of Parliament serving as company directors. We analyze 467 British companies over the period 1895 to 1904. An analysis of election results shows that the election of a new tech director is associated with a 2 percent to 2.5 percent increase in that firm's share price, whereas old tech firms were unaffected by the electoral fortunes of their directors. New technology firms with political directors were more likely to undertake seasoned issues of both equity and debt.
Original languageEnglish
Pages (from-to)142-176
JournalJournal of Economic History
Volume73
Issue number1
Publication statusPublished - 2013

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Economics
Late-Victorian
Victorian Britain
Political connections
Economic benefits
Elections
Debt
Politicians
Victorian Era
Fortune
Parliament
Equity
Share prices

Cite this

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The economic benefits of political connections in late Victorian Britain. / Braggion, F.; Moore, L.

In: Journal of Economic History, Vol. 73, No. 1, 2013, p. 142-176.

Research output: Contribution to journalArticleScientificpeer-review

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