Goetzmann, Will, Le Bris, David and Pouget, Sébastien (2019) The present value relation over six centuries: The Case of the Bazacle Company. Journal of Financial Economics, vol. 132 (n° 1). pp. 248-265.

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Identification Number : 10.1016/j.jfineco.2017.03.011


We study asset pricing over the longue durée using share prices and net dividends from the Bazacle company of Toulouse, the earliest documented shareholding corpo- ration. The data extend from the firm's foundation in 1372 to its nationalization in 1946. We find an average dividend yield of 5% per annum and near-zero long-term, real capital appreciation. Stationary dividends and stock prices enable us to directly study how prices relate to expected cash flows, without relying on a rate of return transformation. A reduced-form asset pricing model with persistent dividends and a time-varying risk correction is not rejected by the data.

Item Type: Article
Sub-title: The Case of the Bazacle Company
Language: English
Date: April 2019
Refereed: Yes
Uncontrolled Keywords: asset pricing, history of finance, present-value tests
Divisions: TSE-R (Toulouse), TSM Research (Toulouse)
Site: UT1
Date Deposited: 11 Apr 2017 09:28
Last Modified: 09 Sep 2021 09:26
OAI Identifier: oai:tse-fr.eu:31622
URI: https://publications.ut-capitole.fr/id/eprint/23686
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