The London Assurance Company (LA), which incorporated during the bubble of 1720, experienced more dramatic price movements in its shares than the South Sea Company. This paper examines how incorporating during the bubble affected its long run performance. We show that the bubble in the Company's share price was partly attributable to changes in market structure during the share issuance process. As a result of the bubble, the Company's original subscribers, who had been curated for expertise and political connections, overwhelmingly exited during 1720 and were replaced by unsuccessful speculators. Analysis of LA shareholder behaviour up to 1737 suggests that this loss of shareholder expertise had detrimental consequences for the Company's performance. These results demonstrate how a bubble in the shares of a newly created company can lead to an exodus of value-adding investors, damaging the company's long-term prospects.

中文翻译：

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泡沫公司的剖析：1720 年的伦敦保险公司

伦敦保险公司 (LA) 在 1720 年泡沫期间成立，其股票价格波动比南海公司更为剧烈。本文研究了泡沫时期的合并如何影响其长期绩效。我们发现，公司股价出现泡沫，部分原因是股票发行过程中市场结构的变化。由于泡沫，该公司最初的订阅者（他们是因专业知识和政治关系而被挑选出来的）在 1720 年绝大多数退出，并被不成功的投机者所取代。对 1737 年洛杉矶股东行为的分析表明，股东专业知识的丧失对公司的业绩产生了不利的影响。这些结果表明，新创建公司的股票泡沫如何导致增值投资者流失，损害公司的长期前景。