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Identifying the impact of crisis on cooperative capital constraint. A short note on French craftsmen cooperatives

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  • Anne Musson

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers)

  • Damien Rousselière

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, AGROCAMPUS OUEST, UQAM - Université du Québec à Montréal = University of Québec in Montréal)

Abstract

This research note addresses for the first time the issue of capital constraint and credit rationing for craftsmen cooperatives, which are small to medium grassroots cooperatives. We estimate an ECM (Error correction model) using various specifications as robustness checks on an exhaustive French cooperative database. We find empirical evidence of an impact of crisis on cooperative financial constraint, but we highlight that this constraint is more stringent for cooperatives with medium volume of cash flow. This result leads to the question of cooperatives financing during the period of a global economic downturn.

Suggested Citation

  • Anne Musson & Damien Rousselière, 2020. "Identifying the impact of crisis on cooperative capital constraint. A short note on French craftsmen cooperatives," Post-Print hal-02290727, HAL.
    • Handle: RePEc:hal:journl:hal-02290727
    DOI: 10.1016/j.frl.2019.09.005
    Note: View the original document on HAL open archive server: https://hal.science/hal-02290727
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    More about this item

    Keywords

    Error correction model; Cooperatives; Credit rationing; Capital constraint;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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