Cooperative Competitiveness and Capital Structure in the Greek Dairy Industry
There has been an increasing interest in cooperative capital structure and its association with the cooperative competitiveness, but the relevant hypotheses have not been tested by using a comprehensive analysis. This paper examines the effects of financial ratios on net profit margins using panel data for the period 1990-981 and explains differences between the cooperative and the investor owned firms (IOFs) operating in the Greek dairy industry. The relevant descriptive statistics show that IOFs are more profitable, while fixed effect results suggest that profitability differences between the two groups can be mainly attributed to the greater effectiveness of IOF capital structure determinants. These results provide a clear message to the cooperative management that if cooperativesâ€™ aim is to improve their competitiveness against IOFs, then Greek dairy cooperatives should increase the contribution of retained profits to capital along with a better exploitation of capital intensity and economies of scale. The paper, however, suggests that a study of non-economic aspects is also required for a complete evaluation of the Greek dairy cooperative performance.
Volume (Year): 31 (2003)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Web page: http://departments.agri.huji.ac.il/economics/en/jrc.htm
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ags:jlorco:59570. 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: (AgEcon Search)
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.