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Independent Women: Investing in British Railways, 1870-1922

Journal: Economic History Review

Date: 2021

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

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

This study examines British railway shareholders between 1870-1922, focusing particularly on the period 1915-1922 when the British capital market had reached maturity.

Data Sources

Analysis of nearly 500,000 shareholders across six major British railway companies using shareholder address books and registers.

Historical Significance

Railways were the largest sector on the British stock market, making up about half of market capitalization of domestic equity in 1900.

Growth in Female Railway Shareholders Over Time

  • Shows dramatic increase in female shareholders in Great Western Railway from 11% in 1843 to 40% by 1920
  • Reflects broader trend of increasing female participation in financial markets
  • Major growth occurred in late Victorian era after introduction of Married Women's Property Acts

Women More Likely to Invest Independently Than Men

  • 70-80% of women invested on their own compared to just 30-40% of men
  • Shows strong female preference for independent investment decision-making
  • Challenges historical assumptions about women's financial dependence

Distance from Railway Investment by Gender

  • Women tended to invest more locally with median distance of 15.2 miles vs 17.3 for men
  • Both genders showed strong preference for local investment with ~40% within 5 miles
  • Pattern more pronounced for railways without London terminals

Railway Portfolio Diversification by Gender

  • Men held shares in an average of 1.67 railways vs 1.37 for women
  • Shows women prioritized independence over diversification
  • Reflects different investment strategies between genders

Investment Holding Periods

  • Only 29% of shareholders held investments for 13+ years
  • Very few (3%) maintained holdings for 45+ years
  • Suggests active trading rather than buy-and-hold approach

Contribution and Implications

  • Demonstrates women were independent financial actors in early 20th century Britain, challenging traditional narratives about female financial dependence
  • Shows women prioritized investment independence over diversification and geographic reach
  • Provides evidence that the democratization of share ownership included significant female participation

Data Sources

  • Shareholder trends chart: Based on Table 3 showing Great Western Railway shareholder composition 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
  • Holding periods chart: Based on Table 9 showing investor holding periods