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Level of the current liquidity ratio versus financial efficiency of dairy cooperatives

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  • Ganc, Marzena

Abstract

The study shows the efficiency of the dairy cooperative depending on the level of their current financial liquidity. Cooperatives were grouped according to the current liquidity ratio using quartiles methods and significance e test of the differences between the groups was conducted on the groups. Adopted to verify the hypothesis that dairy cooperatives with liquidity above the recommended standards of literature show highest efficiency adopted for verification. The most advantageous financial conditions were characterized by dairy cooperatives with liquidity above and within the limits recommended in the literature. This may be due to the fact that having adequate levels of liquidity may be in the form of cooperative farming more important than maximizing financial performance.

Suggested Citation

  • Ganc, Marzena, 2018. "Level of the current liquidity ratio versus financial efficiency of dairy cooperatives," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 276386, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    • Handle: RePEc:ags:iafepa:276386
    DOI: 10.22004/ag.econ.276386
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    References listed on IDEAS

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    1. Mark R. Manfredo & Timothy J. Richards, 2007. "Cooperative risk management, rationale, and effectiveness: the case of dairy cooperatives," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 67(2), pages 311-339, November.
    2. Ananiadis, Yannis & Notta, Ourania & Oustapassidis, Kostas, 2003. "Cooperative Competitiveness and Capital Structure in the Greek Dairy Industry," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 31(2), pages 1-15.
    3. Akridge, Jay T. & Hertel, Thomas W., 1992. "Cooperative and Investor-Oriented Firm Efficiency: A Multiproduct Analysis," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 7, pages 1-14.
    4. Ling, K. Charles, 2012. "The Nature of the Cooperative A Dairy Cooperative Case Study," Research Reports 280112, United States Department of Agriculture, Rural Development.
    5. Ling, K. Charles, 2012. "The Nature of the Cooperative," Cooperative Information Reports (CIR) 280514, United States Department of Agriculture, Rural Development.
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    1. Wasilewski, Mirosław & Ganc, Marzena, 2021. "A Dynamic And Static View Of The Financial Security Of Dairy Cooperatives," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(2).

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    Keywords

    Agricultural Finance; Financial Economics; Production Economics;
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