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Distinguishing dairy cooperatives from investor‐owned firms in Europe using financial indicators

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  • Rafat Ali Mosa Ewaida (RAME) Soboh
  • Alfons Oude Lansink
  • Gert van Dijk

Abstract

The European dairy industry is facing a number of challenges related to policy changes and global trends that add pressure on their economic performance. This study uses logistic regression to analyze differences in financial and performance indicators between European dairy cooperatives and investor-owned firms. The investigated indicators are profitability, debt, operational efficiency, equity growth, size, and country dummies. The empirical application uses data from 170 European dairy firms. Cooperatives are on average less profitable, operate more efficiently, and have a stronger financial position than investor‐owned firms. Using the above‐mentioned financial and performance indicators, cooperatives appear to be well equipped to cope with the challenges ahead. [EconLit citations: Q13; M12; C25]. (C) 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Rafat Ali Mosa Ewaida (RAME) Soboh & Alfons Oude Lansink & Gert van Dijk, 2011. "Distinguishing dairy cooperatives from investor‐owned firms in Europe using financial indicators," Agribusiness, John Wiley & Sons, Ltd., vol. 27(1), pages 34-46, Winter.
  • Handle: RePEc:wly:agribz:v:27:y:2011:i:1:p:34-46
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    File URL: http://hdl.handle.net/10.1002/agr.20246
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    Cited by:

    1. Elena MELIÁ MARTÍ & Ma Pía CARNICER ANDRÉS, 2015. "Organizational models for the major agri-food cooperative groups in the European Union," CIRIEC Working Papers 1506, CIRIEC - Université de Liège.
    2. repec:eee:phsmap:v:490:y:2018:i:c:p:1309-1323 is not listed on IDEAS

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