This is a past event
The seminar will be held the Sir Duncan Rice Library (SDRL) Seminar Room 224 and Online via MS Teams on Feburary 26th from 3pm - 4:15pm (contact: bs-research@abdn.ac.uk for link).
Join Prof Marc Deloof, Professor of Corporate Finance at the University of Antwerp. Prof Deloof is also Chair of the Benelux Corporate Finance Research Network, the network of corporate finance researchers at universities and business schools in the Benelux, and Editor of the Journal of Business Finance and Accounting.
Abstract:
I investigate colonial entrepreneurship in the notorious Congo Free State (CFS) of King Leopold. The CFS presents a compelling case for studying colonial entrepreneurship. The global surge in rubber demand in the late 19th century made the CFS an attractive investment destination. Entrepreneurs were able to secure funding for international new ventures from a vibrant Belgian capital market. From 1886 onwards, a significant number of new ventures began operating in the CFS, especially after 1898 when a new railway line made inland Congo more accessible. Most of these ventures were listed shortly after their founding on the stock exchanges in Brussels or Antwerp, allowing for an assessment of the stock performance of a broad sample of entrepreneurial firms that encompasses most private business operations in the CFS. An analysis of director interlocks between these firms and Belgian banks listed on the Brussels Stock Exchange reveals that the Belgian financial establishment was a crucial contributor to CFS entrepreneurship from the start. While the number of CFS firms was small and their economic importance was limited, almost all the large banks had two or more CFS firm directors on their board. Banks were much more involved in CFS firms than in other Belgian firms operating abroad. The performance of CFS firms was generally disastrous. Concession firms with a CFS ownership stake performed better than independent firms, but they were still poor performers compared to firms operating in Belgium.
- Speaker
- Prof Marc Deloof
- Hosted by
- University of Aberdeen Business School