PhD Defence: Florian Madertoner

Abstract

This dissertation examines key themes in financial and business history, focusing on the historical interaction between corporate financing and operational decision-making. Firms depend on financing to acquire assets and meet ongoing obligations such as wages, making the relationship between finance and operations central yet complex. This interaction is shaped by capital constraints, the influence of financiers, and the emergence of financial innovations. Across three core studies, the dissertation contributes to our understanding of financial innovation, corporate longevity, and the role of leadership in organizational resilience.
The second chapter investigates the early use of convertible bonds in the Netherlands. Drawing on modern corporate finance theory and extensive archival research, it shows that firms issued convertible debt primarily when internal funds were exhausted and access to conventional debt or equity was limited. Convertible bonds served as a pragmatic financing solution under conditions of high risk and credit rationing, while personal networks and international precedents facilitated the diffusion of this innovation.
The third chapter analyzes the termination of publicly listed firms in the Netherlands during the twentieth century. Using a newly constructed dataset and a control group of surviving firms, the study demonstrates a long-term decline in exit probabilities, driven by sustained growth until the 1970s and a shift from voluntary liquidations to involuntary bankruptcies. The determinants of firm exit also changed over time: non-financial factors were more important before the Second World War, whereas financial factors became dominant after 1960. These changes are linked to a broader shift in Dutch corporate governance from a shareholder-oriented model toward greater consideration of multiple stakeholders.
The fourth chapter presents a historical case study of Glasfabriek Leerdam under the leadership of P. M. Cochius. It illustrates how stakeholder-oriented and purpose-driven strategies can generate cultural and social value, but may undermine financial performance when artistic ambition, innovation, and managerial discipline are not effectively balanced.