“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 collect share prices and dividends over its entire lifespan. The average dividend yield in real terms was slightly in excess of is 5% per annum, while the long-term price growth was near zero.”
“Rather than invest in one ship, which could face bad weather or be attacked by pirates, wealthy investors could choose two or more projects in which they invested funds. Also called collegantia in Venice or societas in Genoa, the agreements involved a capital transaction between two parties for overseas business ventures.”
