Factors influencing probability and frequency of participation in merger and partnership activity in agricultural cooperatives

Hudson, Darren; Herndon, Cary W.

doi:10.1002/agr.10017

Cited by 15 publications

(5 citation statements)

References 21 publications

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“…In each case, the primary purpose is to determine whether solvency and liquidity indicators can explain mergers, acquisitions, partnerships, and other strategic interactions or transactions. For example, with 74 observations of US farmer cooperatives, Hudson and Herndon () reported a negative impact of cash patronage obligations on the probability of future strategic transactions. Richards and Manfredo () conducted a panel study of the largest 100 US cooperatives from 1980 to 1998 and observed a negative impact of the current ratio (−0.431) and the debt ratio (−1.306) on the likelihood of engaging in mergers.…”

Section: Financementioning

confidence: 99%

A Review of the Empirical Literature on Farmer Cooperatives: Performance, Ownership and Governance, Finance, and Member Attitude

Grashuis

2018

Ann Public Coop Econ

149

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The empirical literature on farmer cooperatives is now fast emerging and developing in the areas of performance, ownership and governance, finance, and member attitude. We discuss 56 peer‐reviewed publications to illustrate the main findings and conclusions while outlining challenges and opportunities for future research. Generally, cooperative membership is found to positively impact price, yield, input adoption, income, and other indicators of member performance, yet there is growing evidence of an uneven distribution of benefits for small and large producers. In terms of structure, evidence of a causal relationship of ownership and governance to performance has been elusive, yet there are now many findings of inherent equity and long‐term debt constraints, often in the context of consolidation to drive scale and scope economies. Further inefficiency is observed to be driven by increased heterogeneity in member attitudes and objectives, in particular in terms of commitment and participation. Thus, overall, empirical work portrays farmer cooperatives as flawed and complex business organizations which nonetheless have a strong positive impact on its members. While applied research may progress in various directions, a general improvement in empirical methodologies is needed to allow robust analysis of mixed objectives in dynamic environments.

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Section: Financementioning

confidence: 99%

A Review of the Empirical Literature on Farmer Cooperatives: Performance, Ownership and Governance, Finance, and Member Attitude

Grashuis

2018

Ann Public Coop Econ

149

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“…The most frequently used have been turnover (Oustapassidis, 1992;Trechter, 1996;Oustapassidis et al, 1998;Vidal et al, 2000;Hudson and Herndon, 2002;Montegut et al, 2002;Arcas and Ruiz, 2003) and assets (Lerman and Parliament, 1991;Barton et al, 1993;Fulton et al, 1995;Trechter, 1996;Vidal et al, 2000). Other, less frequently used measures include the number of members (Trechter, 1996;Hudson and Herndon, 2002), employees (Moyano and Fidalgo, 2001;Arcas and Ruiz, 2003) and storage capacity (Fulton and King, 1993). In this study, the measures of size used are: sales, total assets, material fixed assets, permanent employment, temporary employment, handling surface and numbers of members.…”

Section: Min T Zmentioning

confidence: 99%

Effect of Size on Performance of Spanish Agricultural Cooperatives

Arcas¹,

Garcia²,

Guzmán³

2011

Outlook Agric

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As with other types of company, size in agricultural cooperatives has generally been signalled as a facilitator of competitive advantage, bringing both cost reduction associated with economies of scale and differentiation through innovation. However, size is also associated with certain disadvantages deriving from structural complexity and reduced flexibility. In this context, the objective of this paper is to verify the relationship empirically between the size of agricultural cooperatives and their performance. The study uses data on 108 fresh fruit and vegetable cooperatives in Spain. The positive results obtained concerning the relationship will be of use to those responsible for the administration of such enterprises in making decisions on growth strategies.

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“…Another motivation for mergers can be the company size and its position in the market (Hudson and Herndon 2002). Comparing Czech, Slovak and Polish agricultural companies, 93% of companies in the Czech Republic are owned by individuals and these have the production share of 24%, in Slovakia it is 99% of agricultural companies, but they have only 18% production share (Tamáš 2010).…”

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confidence: 99%

Analysis of mergers in Czech agriculture companies

Hýblová¹

2014

AGR ECON-CZECH

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Agriculture represents a signifi cant part of the national economy. It secures production of food and infl uences many related processing industries. Although the volume of agricultural production and its proportion in the gross dom estic product has been decreasing, there is a huge interest in increasing the performance of agriculture companies. One of the ways to enhance the company performance, to gain new markets or to achieve cost savings is a merger. Mergers are not very usual in the fi eld of agriculture currently -their proportion in the total number of mergers in the Czech Republic in 2001-2013 was 3.07%. Th e aim of this paper is to analyse mergers in the fi eld of agriculture. Th e analysis focuses on the consequences of mergers from the perspective of changes in the fi nancial position and the company performance in the year before the merger and three years after the merger. Th e analysis proved that the company size (measured by the balance sheet total) decreased as a consequence of mergers and their performance increased.

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Factors influencing probability and frequency of participation in merger and partnership activity in agricultural cooperatives

Cited by 15 publications

References 21 publications

A Review of the Empirical Literature on Farmer Cooperatives: Performance, Ownership and Governance, Finance, and Member Attitude

A Review of the Empirical Literature on Farmer Cooperatives: Performance, Ownership and Governance, Finance, and Member Attitude

Effect of Size on Performance of Spanish Agricultural Cooperatives

Analysis of mergers in Czech agriculture companies

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