Mitchell, B. R. (Brian R.), Chambers, D. (David) and Crafts, N. F. R. (2011) How good was the profitability of British Railways, 1870-1912? Economic History Review, Vol.64 (No.3). pp. 798-831. doi:10.1111/j.1468-0289.2010.00550.x ISSN 0013-0117.

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Abstract

This article provides new estimates of the return on capital employed (ROCE) for major British railway companies. It shows that ROCE was generally below the cost of capital after the mid-1870s and fell until the turn of the century. Addressing cost inefficiency issues could have restored ROCE to an adequate level in the late 1890s but not in 1910. Declines in ROCE hit share prices and investors made little or no money in real terms after 1897. Optimal portfolio analysis shows that, while railway securities were attractive to investors before this date, they would have been justified in rushing to the exits thereafter.

Item Type:	Journal Article
Subjects:	T Technology > TF Railroad engineering and operation H Social Sciences > HE Transportation and Communications
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	British Railways, Railroads -- Great Britain, Railroads -- Fares -- Great Britain, Great Britain -- Economic conditions -- 19th century
Series Name:	Warwick economic research papers
Journal or Publication Title:	Economic History Review
Publisher:	Blackwell
Place of Publication:	Coventry
ISSN:	0013-0117
Official Date:	August 2011
Dates:	Date Event August 2011 Published
Volume:	Vol.64
Number:	No.3
Number of Pages:	45
Page Range:	pp. 798-831
DOI:	10.1111/j.1468-0289.2010.00550.x
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access (Creative Commons)
Version or Related Resource:	Mitchell, B., Chambers, D. and Crafts, N.F.R. (2009). How good was the profitability of British Railways, 1870-1912?. [Coventry] : University of Warwick, Economics Department. (Warwick economic research papers, no.859).
Related URLs:	Related item in WRAP

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• How good was the profitability of British Railways, 1870-1912? (deposited 04 Sep 2009 09:59)
  • How good was the profitability of British Railways, 1870-1912? (deposited 24 Oct 2011 10:57) [Currently Displayed]

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