Vaihekoski, Mika (2026). Equity issues and other capital actions by publicly listed companies in Finland, 1912-1981. Forthcoming in Scandinavian Economic History Review. DOI: https://doi.org/10.1080/03585522.2026.2647867. The article is published under an OA (Open Access) license.
Abstract
Equity issues are a crucial part of properly functioning financial markets as they facilitate the allocation of capital to its most efficient use. Historically, publicly listed firms have often had superior opportunities to raise new equity capital from investors. This paper analyses equity issuances and their role as a source of capital to Finnish firms listed on the Helsinki Stock Exchange (HSE) from 1912 to 1981. The results show that the role of the stock exchange in helping companies raise new equity capital in Finland was perhaps more significant than previously thought. The results also show that economic and stock market development influences the timing of the seasoned equity issues. The decision to allow companies to deduct dividends paid on newly issued equity since 1969 has clearly increased cash issues. A newly updated and extended historical database on corporate capital actions for the Finnish stock market is used in the analysis.