Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271253 
Year of Publication: 
2021
Series/Report no.: 
QMS Research Paper No. 2021/08
Publisher: 
Queen's University Belfast, Queen's Management School, Belfast
Abstract: 
Clientele-based theories explaining asset price bubbles are often difficult to test because the identities of investors cannot easily be tracked over time. This paper tests these theories using a hand-collected sample of 12,000 investors during an asset price reversal in the shares of British bicycle companies between 1895 and 1900. We find that informed investors reduced their holdings substantially during the crash, suggesting that they were riding the bubble. Those who performed worst were not typically the least informed groups, but gentlemen living near a stock exchange, who had the most time, money, and opportunity to engage in speculation.
Subjects: 
British financial history
financial bubbles
JEL: 
G01
N23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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