Why Did Shareholder Liability Disappear? - Economics Seminar

Event Date: 22 March 2023

Speaker: John Turner, Professor of Finance and Financial History at Queen’s University Belfast and director of the Queen’s University Centre for Economic History.

Time: 4-5:15pm

Location: Please contact Rachel Hill (r.hill@strath.ac.uk) for Zoom details

Abstract: "Why did shareholder liability disappear? We address this question by looking at its use by British insurance companies from 1830 until its complete disappearance by 1975. We explore three explanations for its demise: (1) regulation and government-provided policyholder protection meant that it was no longer required; (2) it had become de facto limited; and (3) shareholders saw an opportunity to expunge something they disliked when insurance companies grew in size. Using hand-collected archival data, our findings suggest investors attached a risk premium to shareholder liability, and it was phased out after a merger movement increased the size of insurance companies which meant that they were better able to pool risks.."

Published: 11 January 2023

Contact details

 Undergraduate admissions
 +44 (0)141 548 4114

 Postgraduate admissions
 +44(0)141 553 6118 / 6119


Strathclyde Business School
University of Strathclyde
199 Cathedral Street
G4 0QU

Triple accredited

AACSB, AMBA and Equis logos
PRME logo