Governance Control Mechanisms in Portuguese Agricultural Credit Cooperatives
AbstractOver the last decade Portuguese Agricultural Credit Cooperatives (ACCs) have increasingly face survival challenges related to their difficulty in gathering equity. The main source of ACCs equity is the net benefit; thus, understanding how ACCs governance can work on correcting bad economic performance is of crucial importance to overcome this constraint. The main objective of this paper is to describe the governance control mechanisms in the ACCs. Five governance mechanisms are identified: board and chairman change (internal mechanisms), central ACC intervention by an agent or by management board replacement and merger. Empirical analysis proved that the internal governance mechanisms activity is not related to the ACC performance. Additionally: (a) ACCs with a central ACC agent and merged ACCs hold a weaker credit management and a heavy administrative costs structure and profitability problems; and (b) ACCs with a management board replacement by the central ACC hold a weaker credit management and present solvency problems.
Download InfoIf 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.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24623.
Date of creation: 2005
Date of revision:
cooperatives; credit; governance; multinominal logit; Agricultural Finance; D23; L29;
Find related papers by JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-49, June.
- Nilsson, Jerker, 2001. "Organisational principles for co-operative firms," Scandinavian Journal of Management, Elsevier, vol. 17(3), pages 329-356, September.
- Barro, Jason R & Barro, Robert J, 1990.
"Pay, Performance, and Turnover of Bank CEOs,"
Journal of Labor Economics,
University of Chicago Press, vol. 8(4), pages 448-81, October.
- Barro, Jason R. & Barro, Robert J., 1990. "Pay, Performance, and Turnover of Bank CEOs," Scholarly Articles 3451300, Harvard University Department of Economics.
- Jason R. Barro & Robert J. Barro, 1990. "Pay, Performance, and Turnover of Bank CEOs," NBER Working Papers 3262, National Bureau of Economic Research, Inc.
- Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
- Borgen, Svein Ole, 2004. "Rethinking incentive problems in cooperative organizations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(4), pages 383-393, September.
- Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
- Staatz, John M., 1987. "Recent Developments in the Theory of Agricultural Cooperation," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 2.
- Rasmusen, Eric, 1988. "Mutual Banks and Stock Banks," Journal of Law and Economics, University of Chicago Press, vol. 31(2), pages 395-421, October.
- Blackwell, David W. & Brickley, James A. & Weisback, Michael S., 1994. "Accounting information and internal performance evaluation : Evidence from Texas banks," Journal of Accounting and Economics, Elsevier, vol. 17(3), pages 331-358, May.
- Kane, Edward J. & Hendershott, Robert, 1996.
"The federal deposit insurance fund that didn't put a bite on U.S. taxpayers,"
Journal of Banking & Finance,
Elsevier, vol. 20(8), pages 1305-1327, September.
- Edward J. Kane & Robert Hendershott, 1994. "The Federal Deposit Insurance Fund That Didn't Put A Bite on U.S. Tax Payers," NBER Working Papers 4648, National Bureau of Economic Research, Inc.
- Mester, Loretta J., 1991. "Agency costs among savings and loans," Journal of Financial Intermediation, Elsevier, vol. 1(3), pages 257-278, June.
- Paula Cabo & Joao Rebelo, 2005. "Why do Agricultural Credit Cooperatives Merge? The Portuguese Experience," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(3), pages 491-516, 09.
- Anderson, Christopher W. & CampbellII, Terry L., 2000. "Restructuring the Japanese banking system Has Japan gone far enough?," International Review of Financial Analysis, Elsevier, vol. 9(2), pages 197-218.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.