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Independent Women: Investing in British Railways, 1870-1922

Journal: Economic History Review

Date: 20210501

Author: Acheson, Graeme G.; Campbell, Gareth; Gallagher, Aine; Turner, John D.

Abstract:
The early twentieth century saw the British capital market reach a state of maturity before any of its global counterparts. This coincided with more women participating directly in the stock market. This study analyses whether these female shareholders chose to invest independently of men. Using a novel dataset of almost 500,000 shareholders in some of the largest British railways, it shows that women were much more likely to be solo shareholders than men. There is also evidence that they prioritized their independence above other considerations such as where they invested or how diversified they could be.

Link: Google Scholar

Background and Context

Time Period & Scope

The study examines female shareholders in British railway companies between 1870-1922, analyzing nearly 500,000 shareholders across six major railway companies.

Historical Significance

Railways were the largest sector on the British stock market, representing about half of market capitalization of domestic equity in 1900 and including 49 of the 100 largest companies.

Data Sources

Analysis based on detailed railway shareholder address books from the National Archives, covering both ordinary and preference shareholders across England and Scotland.

Rising Female Participation in Railway Investment (1843-1920)

  • Shows dramatic increase in female shareholders from 11% in 1843 to 40% by 1920
  • Reflects broader democratization of share ownership during Victorian era
  • Demonstrates women's growing financial independence over this period

Women's Preference for Independent Investment (1915-1922)

  • 70-80% of women invested independently as solo shareholders
  • Only 30-40% of men chose to invest independently
  • Demonstrates clear gender difference in investment approach

Local vs Distant Investment Preferences by Gender

  • Women's median investment distance was 15.2 miles vs 17.3 miles for men
  • 33% of women invested within 5 miles vs 28% for men in regional railways
  • Shows women's stronger preference for local investment

Portfolio Diversification Across Railways by Gender

  • Men held average of 1.67 railway investments vs 1.37 for women
  • Lead joint shareholders averaged 1.78 companies vs 1.46 for solo investors
  • Demonstrates lower diversification among female investors

Family Ties in Joint Shareholdings

  • Only 25% of joint shareholdings were between family members
  • 67% of male secondary shareholders invested with unrelated male leads
  • Women who invested jointly were equally likely to partner with related/unrelated investors

Contribution and Implications

  • First comprehensive analysis of women's investment behavior in Britain's largest industrial sector
  • Demonstrates women's financial independence predated traditional narratives about women's economic emancipation
  • Shows women prioritized independent control over investment diversification opportunities

Data Sources

  • Female Participation Chart: Based on Table 3 showing Great Western Railway shareholder classifications 1843-1920
  • Investment Style Chart: Based on Table 5 showing joint holdings analysis
  • Distance Chart: Based on Table 7 showing distance from shareholders to nearest railway station
  • Diversification Chart: Based on Table 8 showing shareholdings across multiple railways
  • Family Ties Chart: Based on Table 6 showing familial ties among joint shareholdings