Advanced Search
MyIDEAS: Login

The impact of board of director characteristics on Farm Credit Association performance

Contents:

Author Info

  • Michael Gunderson
  • Brent Gloy
  • Chris Rodgers

Abstract

Purpose – The purpose of this paper is to identify how board size and board member compensation impact the operating performance of Farm Credit Associations. Cooperatives are a unique business structure that might not have profit maximization as a goal. Thus measures of performance other than return on equity are used to establish the link. Design/methodology/approach – The paper uses regression to explain the relationship between board characteristics and performance. Findings – The results of the models of return on assets and equity indicated that board size and compensation explain little of the variability in performance in these profitability measures. The results of the models of operating efficiencies explained a greater proportion of the variability in the operating efficiency and operating expenses-to-average assets ratios. In both models the relationship exhibited diminishing returns to board size and per member compensation. Research limitations/implications – The data are based on just one year of performance, limiting the generalizability of the results. Practical implications – The paper includes implications for the size of boards of directors and director compensation. Originality/value – This paper fulfils an identified need to study the impacts of boards of directors for cooperatives.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=329E71513C1EA3A54DEC90AA65C2AC33?contentType=Article&contentId=1801449
Download Restriction: Cannot be freely downloaded

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.

Volume (Year): 69 (2009)
Issue (Month): 2 (July)
Pages: 149-159

as in new window
Handle: RePEc:eme:afrpps:v:69:y:2009:i:2:p:149-159

Contact details of provider:
Web page: http://www.emeraldinsight.com

Order Information:
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Email:
Web: http://www.emeraldinsight.com/afr.htm

Related research

Keywords: Boards of Directors; Compensation; Co-operative organizations; Credit; Farms; Governance;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eme:afrpps:v:69:y:2009:i:2:p:149-159. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.