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Financing in EuropeRelationship-Based Finance in Changing European Banking Scenarios: The Case of Parent Schaken et Compagnie (1835–66)

Financing in Europe: Relationship-Based Finance in Changing European Banking Scenarios: The Case... [At a time when formal (impersonal) markets for credit were at an embryonic stage, the role of social relationships in raising funds for new ventures was crucial. ‘Investment tended to be a cumulative social process’ where trust and reputation played a role. Strong kinship and business ties linking partnership members were therefore critical in facilitating the flow of capital into new ventures. The way the diversified and broad-ranging businesses (railways, mines and public utilities) undertaken by the Paris-based partnership Parent Schaken et C.ie (P&S) were funded illustrates an important point about this topic. By making use of the basic tools of the Social Network Analysis, the authors show the P&S network of interpersonal relationships evolved and just how it mattered in facing the changing European financial scenarios, when long-term investment developed and impersonal money markets took shape.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Financing in EuropeRelationship-Based Finance in Changing European Banking Scenarios: The Case of Parent Schaken et Compagnie (1835–66)

Editors: Lorenzini, Marcella; Lorandini, Cinzia; Coffman, D'Maris
Financing in Europe — Feb 20, 2018

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References (27)

Publisher
Springer International Publishing
Copyright
© The Editor(s) (if applicable) and The Author(s) 2018
ISBN
978-3-319-58492-8
Pages
291 –318
DOI
10.1007/978-3-319-58493-5_12
Publisher site
See Chapter on Publisher Site

Abstract

[At a time when formal (impersonal) markets for credit were at an embryonic stage, the role of social relationships in raising funds for new ventures was crucial. ‘Investment tended to be a cumulative social process’ where trust and reputation played a role. Strong kinship and business ties linking partnership members were therefore critical in facilitating the flow of capital into new ventures. The way the diversified and broad-ranging businesses (railways, mines and public utilities) undertaken by the Paris-based partnership Parent Schaken et C.ie (P&S) were funded illustrates an important point about this topic. By making use of the basic tools of the Social Network Analysis, the authors show the P&S network of interpersonal relationships evolved and just how it mattered in facing the changing European financial scenarios, when long-term investment developed and impersonal money markets took shape.]

Published: Feb 20, 2018

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