Financial Characteristics of Large British Companies, 1898-1918

<p>Abstract copyright UK Data Service and data collection copyright owner.</p>The main aims of the project were twofold: (1) to identify for eleven benchmark years - occurring at five-year intervals starting with 1868 and ending in 1918 - Britain's 125 largest companies (as measured by the market capitalization of their ordinary shares); and (2) to construct a consistent dataset of the key financial characteristics of the identified companies. <br> <br> The project's aims were designed to serve two objectives: (1) to permit detailed measures of profitability for each identified company, embracing both security price appreciation (or depreciation, as the case may be) and payments of dividends and interest; and (2) the creation of a British stock exchange index compatible with the FT-SE 100 in use since 1984.<br> <br> The key financial characteristics of the companies examined by the project were: (1) the monthly closing price of each traded security for each identified company; (2) the number of each traded security outstanding at the end of each month. Multiplied together, characteristics (1) and (2) produce market capitalization by security for each month. Summing all securities issued by a company produces for each month its total market capitalization.<br> <br> The other key financial characteristics were: (3) the paid-up amount for each security, including premiums (if any); (4) the nominal value of each security; (5) the payments (if any) made in each month to holders of the securities. Characteristics (3)-(5) record the flows of funds to companies and the flows of funds from them, thereby permitting measures of financial profitability.<br> <br> The data relate to 'British' companies with London Stock Exchange quotes for their ordinary shares. To be included, companies had: to have their securities quoted in sterling (or at least a preponderance of them in sterling); to pay dividends and interest in sterling; to have a London office; and, to have a preponderance of British directors.<B>Main Topics</B>:<br>This data collection is an interim deposit and further material will subsequently be added to complete it.<br> <br> This, first installment, is presented in two file sets. The first set consists of summary benchmark tables for four years: 1868, 1883, 1898, and 1913. In each of these tables, the largest 125 British companies are ranked according to the size of the market value of their ordinary shares on the last trading day in June of the relevant year. Column (2) shows, for each company, the market value of ordinary shares outstanding - the basis of the rankings. This value was arrived at in the following manner: the closing mid-market price (average of bid-ask) per share on the indicated day, multiplied by the number of shares outstanding. Column (3) reports analogous calculations for debentures (if any). Column (1) reports the sum of Columns (2) and (3), plus the market capitalization of any preference shares outstanding. All traded securities were allocated to one or another of the categories, so that Column (1) represents total market capitalization. The last column, headed <i>dividend rate of return at market,</i> is the total cash dividend paid on ordinary shares in the twelve months ending on the last trading day of June.<br> <br> The first file set also includes the scanned, edited data set from the <i>Investor's Monthly Manual</i> from which the benchmark rankings were taken.<br> <br> The second file set contains the data for individual companies. The data are set out in six columns. Column (1) is the date (by month). Column (2) is the last quoted price of the indicated security in the indicated month. Column (3) is the number of the indicated securities outstanding. Thus (Column 1) multiplied by (Column 2) equals the aggregate market value of the indicated security. Column (4) records the paid-up amount for each security. Column (5) records the nominal value of the security. Any difference between Columns (4) and (5) represents a liability incurred by the registered owner of the security. Column (6) records announced dividends (or interest, as the case may be) per share (or security) as a per cent of nominal value. Thus (Column 6) multiplied by (Column 4) equals the cash dividend (interest) paid on the share (security). Thus (Column 6) multiplied by (Column 4) multiplied by (Column 3) equals total cash dividend (or interest) paid by the company to holders of the indicated security.<br> <br> An integral part of the individual company data is the accompanying company notes, which provide detail on capital structure and dividends. This is especially important when bonus (or deeply discounted) shares are issued. Ignoring these notes may cause dividends in particular to be under-estimated.<br> <br> A Directory to the individual companies is also included.<br> <br> Please note: this study does not include information on named individuals and would therefore not be useful for personal family history research.