Much Ado About Nothing: The Limitation of Liability and the Market for 19th century Irish Bank Stock

John Turner, Charles Hickson, C. McCann

Research output: Contribution to journalArticle

18 Citations (Scopus)

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 languageEnglish
Pages (from-to)459-476
Number of pages18
JournalExplorations in Economic History
Volume42 (3)
Issue number3
DOIs
Publication statusPublished - Jul 2005

ASJC Scopus subject areas

  • Economics and Econometrics

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