Capital structure, firm size, and efficiency: the case of farm petroleum and animal feed co-operatives in Canada
Abstract
This paper examines the cost structure and cost efficiency for an unbalanced sample of 42 animal feed and 115 farm petroleum co-operatives in Canada over the period 1984-2001 using heterogeneous technology stochastic frontier models. The parameter estimates of the cost frontier and the resulting cost efficiency scores indicate there are statistically and economically significant cost inefficiencies. Further analysis revealed that financial structure and firm size have likely contributed to variations in cost efficiency. Obtaining sufficient equity capital is expected to improve co-operative efficiencyDownload Info
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Bibliographic Info
Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.
Volume (Year): 67 (2007)
Issue (Month): 2 (September)
Pages: 279-293
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Web page: http://www.emeraldinsight.com
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Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
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Web: http://www.emeraldinsight.com/afr.htm
Related research
Keywords: Agribusiness co operatives; Capital structure; Cost efficiency;References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Gabriel J. Power & Victoria Salin & John L. Park, 2012. "Strategic options associated with cooperative members' equity," Agricultural Finance Review, Emerald Group Publishing, vol. 72(1), pages 48-67, March.
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