We analyze a new blue chips (large caps) stock index for France from 1854 to 1998. We detail its methodology and show that it differs profoundly from earlier indices, and that it is more consistent with the French financial and economic history. We suggest this result casts some doubt on many...

We analyze a new blue chips (large caps) stock index for France from 1854 to 1998. We detail its methodology and show that it differs profoundly from earlier indices, and that it is more consistent with the French financial and economic history. We suggest this result casts some doubt on many...

It is interesting to identify the extreme cases of changes in the stock exchange caused by wars. Stock return depends on how the war is financed. The Franco-Prussian war was financed only by regular debt thus stocks reflected only situations of real activity. WWI was partially financed by short...

The French stock market crisis of 1961-67 was the biggest of the twentieth century after that of the 1930s. Using the new stock index (historical CAC 40), it is possible to get a fair idea of its amplitude and detail its chronology. The possibility is considered that the crisis of the 1960s was...

We use the Bazacle company of Toulouse's unique historical experience as a laboratory to test asset pricing theory. The Bazacle company is the earliest documented shareholding corporation. Founded in 1372 and nationalized in 1946, it was a grain milling firm for most of its 600 year history. We...

Stock market crashes are crucial as a large part of the final value of any stock market index is realized during these extreme events. But, the same price variation in percentage does not have the same impact in a stable financial environment as in a highly volatile period. To identify crashes...

This paper examines the question as to whether, before 1914, French savers bought foreign assets to gain higher foreign returns or because of low correlation. Using tools of the Modern Portfolio Theory, the benefit from international diversification is decomposed into these two components, using...

French stock market volatility observed over the last 150 years presents a huge instability. From a very low level before the First World War, it shows a continuous increase during the inter-war period. Despite peace and economic stability, volatility has never converged to levels seen pre-1914....

When faced with a run on a “systemically important” but insolvent bank in 1889, the Banque de France pre-emptively organized a lifeboat to ensure that depositors were protected and an orderly liquidation could proceed. To protect the Banque from losses on its lifeboat loan, a guarantee...

When faced with a run on a "systemically important" but insolvent bank in 1889, the Banque de France pre-emptively organized a lifeboat to ensure that depositors were protected and an orderly liquidation could proceed. To protect the Banque from losses on its lifeboat loan, a guarantee syndicate...