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Impact of Board Structure and Process on Cooperative Performance

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  • Franken, Jason R.V.
  • Cook, Michael L.

Abstract

Limited inquiry into cooperative governance and performance suggests that best practices from corporate governance literature may not apply uniformly to cooperatives. The rarely addressed issue of endogeneity limits confidence in recommendations for corporations and cooperatives alike. By accounting for the most commonly recognized sources of endogeneity, expectations of better performance by larger cooperatives with smaller boards are confirmed, while mixed evidence is obtained on effects of seating outside experts on the board and the board’s share of equity. A comprehensive understanding of implications of governance choices requires consideration of trade-offs between financial performance and effectively serving other needs of patron-members.

Suggested Citation

  • Franken, Jason R.V. & Cook, Michael L., 2013. "Impact of Board Structure and Process on Cooperative Performance," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149420, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149420
    DOI: 10.22004/ag.econ.149420
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    1. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    2. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    3. Louis-Antoine Saïsset, 2016. "L’impact des modes de gouvernance et de l’immatériel sur la performance des entreprises coopératives agricoles : des perspectives d’avenir au sein des coopératives vinicoles du Languedoc-Roussillon," Post-Print hal-02637051, HAL.
    4. Michael Segun Ogunmuyiwa & Oluwakemi Rachel Aladegoroye & Adebiyi Julius Abosede, 2020. "Funding of Micro Scale Enterprises: Is Cooperative Financing Helpful?," Business & Management Compass, University of Economics Varna, issue 4, pages 430-443.
    5. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.
    6. Abdullah Sallehhuddin & Al Mansor Abu Said & Nor Hasmanto & Mohd Ariff Mustafa & Mohammad Jais & Azizi Samsudin & Md Shukor Masuod & Hishamuddin Ismail, 2017. "Crafting Preliminary Model for Mosque Cooperatives’ Antecedents of Performance," Asian Social Science, Canadian Center of Science and Education, vol. 13(2), pages 116-116, February.

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