Abstract
Abstract
Limited liability is widely believed to be a prerequisite for the emergence of an active and liquid securities market because the transactions costs associated with trading ownership of unlimited liability firms are viewed as prohibitive. In this article, we examine the trading of shares in an Irish bank, which limited its liability in 1883. Using this bank’s archives, we assemble a time series of trading data, which we test for structural breaks. Our results suggest that the move to limited liability had a negligible impact upon the trading of this bank’s shares.
| Original language | English |
|---|---|
| Pages (from-to) | 459-476 |
| Number of pages | 18 |
| Journal | Explorations in Economic History |
| Volume | 42 (3) |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Jul 2005 |
ASJC Scopus subject areas
- Economics and Econometrics
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Turner, J., Hickson, C., & McCann, C. (2005). Much Ado About Nothing: The Limitation of Liability and the Market for 19th century Irish Bank Stock. Explorations in Economic History, 42 (3)(3), 459-476. https://doi.org/10.1016/j.eeh.2004.11.002