Financial Behavior of Cooperatives and Investor-Owned Firms: An Empirical Analysis in the Spanish Fruit and Vegetable Sector

Martínez Victoria, M.C.; Arcas Lario, N. y Maté Sánchez-Val, M.L. (2017). ·”Financial Behavior of Cooperatives and Investor-Owned Firms: An Empirical Analysis in the Spanish Fruit and Vegetable Sector”, Agribusiness, 00, pp. 1-16.

Abstract:

A partial adjustment model was formulated to compare financial ratios between cooperatives and investor-owned firms from a dynamic perspective. Empirical results from a sample of Spanish fruit and vegetable firms for the period between 2009 and 2012 reveal different adjustment processes of current, debt, and return on assets ratios between cooperatives and IOFs. We find significant differences between these firms, with slower adjustment rates for current and debt ratios in cooperatives. These findings may arise from the weakness associated with ownership structure in cooperatives, which reduces their adjustment processes compared to those of IOFs. The identification of differences in adjustment processes between cooperatives and IOFs may provide us with additional information regarding the specific management characteristics of these agri-food firms, thus identifying those firms that are most dependent on external market conditions. 

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