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Rule Britannia!: British Stock Market Returns, 1825-1870

Author

Listed:
  • Graeme G. Acheson

    (University of Ulster)

  • Charles R. Hickson

    (Queen's University Belfast)

  • John D. Turner

    (Queen's University Belfast)

  • Qing Ye

    (Queen's University Belfast)

Abstract

"This article presents a new series of monthly equity returns for the British stock market for the period 1825- 70. As well as calculating capital appreciation and dividend yields, the article also attempts to take account of the effect of survivorship bias on returns. Three notable findings emerge from this study. Firstly, stock- market returns in the 1825-70 period are higher in Britain than in the United States. Secondly, real returns in the 1825-70 period are higher than in subsequent epochs of British history. Thirdly, unlike the modern era, the vast majority of returns in our sample period come from dividends rather than capital appreciation."

Suggested Citation

  • Graeme G. Acheson & Charles R. Hickson & John D. Turner & Qing Ye, 2008. "Rule Britannia!: British Stock Market Returns, 1825-1870," Working Papers 8023, Economic History Society.
    • Handle: RePEc:ehs:wpaper:8023
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    References listed on IDEAS

    as
    1. Eugene F. Fama & Kenneth R. French, 2001. "Disappearing Dividends: Changing Firm Characteristics Or Lower Propensity To Pay?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 14(1), pages 67-79, March.
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    5. Gaver, Jennifer J. & Gaver, Kenneth M., 1993. "Additional evidence on the association between the investment opportunity set and corporate financing, dividend, and compensation policies," Journal of Accounting and Economics, Elsevier, vol. 16(1-3), pages 125-160, April.
    6. Schwert, G William, 1990. "Stock Returns and Real Activity: A Century of Evidence," Journal of Finance, American Finance Association, vol. 45(4), pages 1237-1257, September.
    7. Fama, Eugene F, 1990. "Stock Returns, Expected Returns, and Real Activity," Journal of Finance, American Finance Association, vol. 45(4), pages 1089-1108, September.
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    Cited by:

    1. Turner, John D., 2017. "The development of English company law before 1900," QUCEH Working Paper Series 2017-01, Queen's University Belfast, Queen's University Centre for Economic History.

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    JEL classification:

    • N00 - Economic History - - General - - - General

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