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Management Practices and Financial Performance of Agricultural Cooperatives: A Partial Adjustment Model

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  • Azzam, Azzeddine M.
  • Turner, Michael S.

Abstract

This paper uses the Nerlovian partial adjustment model to test the hypothesis that the rate of a cooperative's adjustment to a desired financial position is partially determined by its management practices. The results indicate that management practices that are board responsibilities are not contributing to the speed of adjustment in reaching the desired financial performance, which is the responsibility of the board of directors. But management, when independently pursuing management's responsibility or when working with that board on shared responsibility, does contribute to the speed of adjustment toward the desired financial goal.

Suggested Citation

  • Azzam, Azzeddine M. & Turner, Michael S., 1991. "Management Practices and Financial Performance of Agricultural Cooperatives: A Partial Adjustment Model," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6, pages 1-10.
  • Handle: RePEc:ags:joagco:46256
    DOI: 10.22004/ag.econ.46256
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    File URL: http://ageconsearch.umn.edu/record/46256/files/Vol%206%201991%20Article%202.pdf
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    References listed on IDEAS

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    1. Lin, Winston T, 1986. "Analysis of Lumber and Pulpwood Production in a Partial Adjustment Model with Dynamic and Variable Speeds of Adjustment," Journal of Business & Economic Statistics, American Statistical Association, vol. 4(3), pages 305-316, July.
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    Cited by:

    1. Wadsworth, James J., 2001. "Strategic Planning in Farmer Cooperatives," Research Reports 280023, United States Department of Agriculture, Rural Development.
    2. Suwanna Thuvachote & Nuttiporn Phetphong, 2014. "The Effects of Managers? Characteristics and Perspectives on the Financial Performance of Thai Agricultural Cooperatives," Proceedings of International Academic Conferences 0100604, International Institute of Social and Economic Sciences.

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    Keywords

    Agribusiness;

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