The Open UniversitySkip to content

The merchant banker, the broker and the company chairman: a new issue case study

Rutterford, Janette (2006). The merchant banker, the broker and the company chairman: a new issue case study. Accounting, Business and Financial History, 16(1) pp. 45–68.

DOI (Digital Object Identifier) Link:
Google Scholar: Look up in Google Scholar


This paper explores the roles of a merchant banker, Everard Hambro, and the chairmen of two companies, Thames Iron and Trollope, Colls & Co., in the restructuring of their companies at the beginning of the twentieth century. Their correspondence provides evidence that the choice of corporate capital structure had little to do with company needs or risk characteristics. Instead, Hambro, in concert with stockbrokers, concentrated on ensuring that the securities issued conformed in amount, type and price to market norms, including the avoidance of stock watering. The company chairmen concentrated on ensuring that they retained control and that the new issues were deemed a success.

Item Type: Journal Item
ISSN: 1466-4275
Keywords: corporate finance; stock watering; underwriting; new issue; merchant bank history
Academic Unit/School: Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance
Faculty of Business and Law (FBL) > Business
Faculty of Business and Law (FBL)
Research Group: Innovation, Knowledge & Development research centre (IKD)
Item ID: 1459
Depositing User: Users 12 not found.
Date Deposited: 09 Jun 2006
Last Modified: 07 Dec 2018 08:49
Share this page:


Altmetrics from Altmetric

Citations from Dimensions

Actions (login may be required)

Policies | Disclaimer

© The Open University   contact the OU