This book focuses on a variety of themes concerning the relationship between financial systems in a broader sense and firms’ growth in historical perspective in some European countries. Financial systems are nowadays largely acknowledged to be a crucial element in determining economic growth. In modern economies, they play a key role by mobilizing savings, pricing risks and allocating capital to firms. Following a consolidated taxonomy focusing on the historical perspective, countries have been conventionally divided into bank-oriented (Continental Europe countries and Japan) and market-oriented systems (Anglo-Saxon countries).

The chapters in this book present case studies on Belgium, Great Britain, France and Italy and show that financial systems do not trigger growth processes and industrialization, but they are essential to sustain them over time. Each society has the financial system that fits with its historical trajectory, without any being better or worse than others. The important thing is to have a financial system that is sophisticated and stable, and that evolves according to the demand forces of the moment. History matters.

Bank-Industry versus Stock Market-Industry Relationships will be a beneficial read for students interested in economics and business history. The chapters in this book were originally published as a special issue of Business History.