Library Header Image
LSE Research Online LSE Library Services

Extreme divorce: the managerial revolution in UK companies before 1914

Foreman-Peck, James and Hannah, Leslie ORCID: 0000-0003-0839-7412 (2012) Extreme divorce: the managerial revolution in UK companies before 1914. Economic History Review, 65 (4). pp. 1217-1238. ISSN 0013-0117

Full text not available from this repository.
Identification Number: 10.1111/j.1468-0289.2011.00637.x


We present the first broadly representative study for any early twentieth-century economy of the extent to which quoted company ownership was already divorced from managerial control. In the 337 largest, independent, UK companies in the Investor's year book (those with £1 million or more quoted share capital in 1911), the generality of public shareholders were a narrower group than today, but directors personally owned only 3.4 per cent of the shares. This indicates a lower level of personal ownership (and board voting control) in the largest securities market of the early twentieth century than in any of the world's major securities markets toward the end of that century. Berle, Means, Gordon, and others subsequently quantified the US's later and (on this dimension) less advanced managerial 'revolution'. Their evidence was widely misinterpreted: some erroneously concluded that the US pioneered this aspect of 'modernity' and that the 'divorce' of ownership from control, globally, was a new and continuing trend.

Item Type: Article
Official URL:
Additional Information: © 2011 Economic History Society
Divisions: Management
Subjects: D History General and Old World > DA Great Britain
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification: J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining
L - Industrial Organization > L0 - General
N - Economic History > N0 - General
Date Deposited: 13 Dec 2011 09:44
Last Modified: 04 Jun 2024 04:48

Actions (login required)

View Item View Item