Relationship-Based Finance in Changing European Banking Scenarios: The Case of Parent Schaken et Compagnie (1835–66)

  • Maria Carmela Schisani
  • Francesca Caiazzo
Part of the Palgrave Studies in the History of Finance book series (PSHF)


At a time when formal (impersonal) markets for credit were at an embryonic stage, the role of social relationships in raising funds for new ventures was crucial. ‘Investment tended to be a cumulative social process’ where trust and reputation played a role. Strong kinship and business ties linking partnership members were therefore critical in facilitating the flow of capital into new ventures. The way the diversified and broad-ranging businesses (railways, mines and public utilities) undertaken by the Paris-based partnership Parent Schaken et (P&S) were funded illustrates an important point about this topic. By making use of the basic tools of the Social Network Analysis, the authors show the P&S network of interpersonal relationships evolved and just how it mattered in facing the changing European financial scenarios, when long-term investment developed and impersonal money markets took shape.



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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Maria Carmela Schisani
    • 1
  • Francesca Caiazzo
    • 1
  1. 1.Università degli Studi di Napoli ‘Federico II’NapoliItaly

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