The Shanghai Rubber Boom and the Long-Term Returns of Rubber Shares,1909-1936
Rubber plantation companies constituted the industry sector with most populous constituents in the Shanghai stock market in the early 20th century.However,relevant research is generally limited to the short period of the rubber boom at the end of the Qing Dynasty,and has ignored the long-term performance of these companies.Based on a novel hand-collected dataset of rubber shares,we compile the rubber share price index during the period from 1909 to 1936.We show that the impact of the rubber share crash was limited to the rubber shares and the native banks speculating in rubber shares,and the crash did not bring serious negative effects on other industry stocks.After the crash most rubber companies operated normally.Although rubber shares were subject to significant fluctuations,their long-term return rate was higher than the risk-free interest rate,and they offered some excess returns after risk adjustment.From the perspective of rubber companies,we provide a quantitative understanding of the returns and risks of the modern Shanghai stock market.
The 1910 Rubber BoomModern Shanghai Share MarketStock Index
NETL
NSTL
万方数据
