Work

The Berlin Stock Exchange in Imperial Germany: A Market for New Technology?

Year: 2016

Type: article

Abstract: Analyzing 474 cases of firms going public in the German capital between 1892 and 1913, we show that innovative firms could rely on the Berlin stock market as a source of financing. Our data also reveal that initial public offerings (IPO) of innovative firms were characterized by particularly low underpricing, comparatively high first trading prices, and no long-run underperformance. We interpret these empirical results as evidence for the surprising fact that in the period of the Second Industrial Revolution the Berlin stock exchange was already a well-functioning market for new technology. (JEL G14, N23)

Source: American Economic Review

DOI: 10.1257/aer.20150626

Authors: Sibylle Lehmann-Hasemeyer, Jochen Streb

Institutions: University of Hohenheim, University of Mannheim

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W329544458