64thers, Syndicates, and Stock Promotions: Information Flows and Fund-raising Techniques of British Shipowners Before 1914

Abstract

Analysis of British capital market operations before 1914 has focused on institutional and investor behavior without fully considering entrepreneurial conduct. Consequently, those who argue that industrial performance was impaired because capital flows were obstructed by information blockages have overlooked the role company owners could play in shaping communication lines. The fund-raising techniques used by shipowners reveal that private capital attracted through preferential communication channels supported the rise of large-scale enterprise. Founders were not motivated by supply constraints, nor did they forego profits to retain control. Rather, shipowners created asymmetric information flows to attract resources and shape institutional development.