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An Incomplete Revolution: Corporate Governance Challenges of the London Assurance Company and the Limitations of the Joint-Stock Form, 1720–1725

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  • ALDOUS, MICHAEL
  • CONDORELLI, STEFANO

Abstract

The London Assurance (LA) was incorporated in 1720, marking a significant innovation in the marine insurance industry. Contemporaries anticipated joint-stock firms such as the LA would rapidly outcompete private underwriters, yet this outcome did not occur. The success of the private underwriters has been ascribed to their organizational form. This paper reassesses these explanations and finds that, rather than an a priori worse business model, various corporate governance challenges limited the LA’s capacity to compete. This provides a more complete explanation for the relative failure of the joint-stock marine insurance companies and has implications for understanding the evolution of the corporate form in the eighteenth century.

Suggested Citation

  • Aldous, Michael & Condorelli, Stefano, 2020. "An Incomplete Revolution: Corporate Governance Challenges of the London Assurance Company and the Limitations of the Joint-Stock Form, 1720–1725," Enterprise & Society, Cambridge University Press, vol. 21(1), pages 239-270, March.
    • Handle: RePEc:cup:entsoc:v:21:y:2020:i:1:p:239-270_9
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    Cited by:

    1. Turner, John D., 2024. "Three centuries of corporate governance in the UK," QUCEH Working Paper Series 24-01, Queen's University Belfast, Queen's University Centre for Economic History.
    2. Acheson, Graeme G. & Aldous, Michael & Quinn, William, 2022. "The anatomy of a bubble company: The London Assurance in 1720," QUCEH Working Paper Series 22-08, Queen's University Belfast, Queen's University Centre for Economic History.
    3. Graeme Acheson & Michael Aldous & William Quinn, 2024. "The anatomy of a bubble company: The London Assurance in 1720," Economic History Review, Economic History Society, vol. 77(1), pages 160-184, February.

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