Skip to main content

Financing Growth: New Issues by Australian Firms, 1920-1939

Journal Article


Download full-text (Open Access)

Abstract


  • An expanding economy, new technologies, and changing consumer preferences provided growth opportunities for firms in interwar Australia. This period saw an increase in the number of large-scale firms in mining, manufacturing, and a wide range of service industries. Firms unable to rely solely on retained earnings to fund expansion turned to the domestic stock exchanges. A new data set of capital raisings constructed from reports of prospectuses published in the financial press forms the basis for the conclusion that many firms used substantial injections of equity finance to augment internally generated sources of funds. That they were able to do so indicates a strong increase in the capacity of local stock exchanges and a greater willingness of individuals to hold part of their wealth in transferable securities.

UOW Authors


Publication Date


  • 2009

Citation


  • Merrett, D. & Ville, S. (2009). Financing Growth: New Issues by Australian Firms, 1920-1939. Business History Review, 83 (3), 563-589.

Scopus Eid


  • 2-s2.0-72549099217

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1698&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/660

Has Global Citation Frequency


Number Of Pages


  • 26

Start Page


  • 563

End Page


  • 589

Volume


  • 83

Issue


  • 3

Abstract


  • An expanding economy, new technologies, and changing consumer preferences provided growth opportunities for firms in interwar Australia. This period saw an increase in the number of large-scale firms in mining, manufacturing, and a wide range of service industries. Firms unable to rely solely on retained earnings to fund expansion turned to the domestic stock exchanges. A new data set of capital raisings constructed from reports of prospectuses published in the financial press forms the basis for the conclusion that many firms used substantial injections of equity finance to augment internally generated sources of funds. That they were able to do so indicates a strong increase in the capacity of local stock exchanges and a greater willingness of individuals to hold part of their wealth in transferable securities.

UOW Authors


Publication Date


  • 2009

Citation


  • Merrett, D. & Ville, S. (2009). Financing Growth: New Issues by Australian Firms, 1920-1939. Business History Review, 83 (3), 563-589.

Scopus Eid


  • 2-s2.0-72549099217

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1698&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/660

Has Global Citation Frequency


Number Of Pages


  • 26

Start Page


  • 563

End Page


  • 589

Volume


  • 83

Issue


  • 3