Testing capital structure theories for agricultural cooperatives

Cheng, Yuxi; Katchova, Ani L.

doi:10.22434/ifamr2018.0050

Cited by 4 publications

(2 citation statements)

References 33 publications

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“…The literature identified several factors that are crucial for the success of cooperatives. Carlberg et al (2006), in a study, identified the success factors of cooperatives, which include planning and development, financial costs, managerial practices, product or service focus, organisational principle, logistic management, and governmental or regulatory provisions. These factors strongly follow management principles.…”

Section: Literature Reviewmentioning

confidence: 99%

Why Do Cooperatives Succeed? A Comparative Analysis of the Global South and North

Gupta,

Nath

2024

International Journal of Rural Management

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This article investigates why only some cooperatives succeed. World Cooperative Monitor 2021 reveals that Europe and USA have maximum high-performing cooperatives (based on turnover), while the representation of developing countries in the list of the world’s top cooperatives is meagre. According to the data source of Cooperative Monitor, out of the top 300 coops worldwide, Europe has 159, the USA has 95, the Asia-Pacific region has only 46, and Africa has none. Therefore, this study becomes very pertinent in understanding the performance differences of cooperatives in the Global South vis-à-vis Global North. This study tries to identify the factors that determine the performance of cooperatives operating in both regions. By using Cooperative Monitor’s (2021) data set, the article tries to link the performance of cooperatives with the macro conditions. The democratic condition of a country (macro-level) may influence the performance of institutions at the meso-level (cooperatives). We found that cooperatives in the Global North in countries with higher democratic values have performed better than the cooperatives in the Global South. The study finds that the performance of cooperatives is positively related to democratic values. However, no significant relationship is found between social inclusiveness and the performance of cooperatives.

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Section: Literature Reviewmentioning

confidence: 99%

Why Do Cooperatives Succeed? A Comparative Analysis of the Global South and North

Gupta,

Nath

2024

International Journal of Rural Management

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“…Summary statistics for years other than 2014, not presented in the table, show similar results. Other financial studies have used the CoBank data to address various research topics relevant to the U.S. farmer cooperative industry, such as cooperative profitability (Boyd, Boland, Dhuyvetter & Barton, ) and capital structures of cooperatives (Cheng & Katchova, ).…”

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

Examining U.S. grain marketing and farm supply cooperatives’ sustainable growth rates

et al. 2019

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A challenge for many U.S. grain marketing and farm supply cooperatives is ensuring that exceptional growth rates are sustainable in the long run. Growing too rapidly can sacrifice financial soundness, causing a business to effectively grow broke. The objective of this study is to examine whether or not U.S. grain marketing and farm supply cooperatives are able to manage their recent growth. To do so, we apply the sustainable growth rate (SGR) and sustainable growth challenge (SGC) metrics to a unique panel data set of United States cooperatives. Examining the SGRs for these cooperatives suggests that positive net profit margins are key to positive growth. When actual growth exceeds sustainable growth, most cooperatives are able to rapidly alleviate this difference through increasing leverage or operational efficiency. However, some cooperatives face more persistent growth challenges and are thus the most at risk of growing broke. Large cooperatives and cooperatives more dependent on farm supply sales rely heavily on leverage for managing growth.

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Sustainability Assessment of the Performance of Parmigiano Reggiano PDO Firms: A Comparative Analysis of Firms’ Legal Form and Altitude Range

Iotti,

Ferri,

Manghi

et al. 2024

Sustainability

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Geographical indications (GIs), protected by the European Union with the collective marks of PDO (protected designation of origin), PGI (protected geographical indication), and TSG (traditional specialty guaranteed), play an important role in the social and economic system. They not only guarantee food needs, but promote correct consumer information, protect local food, and play a role in the environmental and social sustainability of rural areas. In Italy, Parmigiano Reggiano (PR-RE) PDO cheese is ranked second in foods with the GI protection mark by turnover. This research aims to assess the financial sustainability of the firms registered in the PR-RE PDO consortium using financial statement (FINSTAT) analysis. Financial ratios (FR) and the EM-Score were applied to assess firms’ performance, financial risk, and credit score. The analysis distinguished firms by legal form, cooperative and non-cooperative, and altitude range—plain hill and mountain. The main findings of the research were as follows: (1) a better performance of lowland non-cooperative firms and lower financial risk, (2) a longer duration of the inventory cycle of cooperative firms, and (3) a greater financial risk in mountain cooperatives. The results provide indications for improving firms’ performance and for designing financial instruments for the sector. To our knowledge, this is the first research to carry out an analysis of all the available FINSTATs of firms in the PR-RE PDO sector.

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Testing capital structure theories for agricultural cooperatives

Cited by 4 publications

References 33 publications

Why Do Cooperatives Succeed? A Comparative Analysis of the Global South and North

Why Do Cooperatives Succeed? A Comparative Analysis of the Global South and North

Examining U.S. grain marketing and farm supply cooperatives’ sustainable growth rates

Sustainability Assessment of the Performance of Parmigiano Reggiano PDO Firms: A Comparative Analysis of Firms’ Legal Form and Altitude Range

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