Investment Constraints in Agricultural Cooperatives

Jason R.V. Franken and Michael L. Cook

No 205427, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: Though horizon and portfolio problems are commonly thought to limit cooperatives’ ability to capitalize on investment opportunities, empirical inquiry into the existence of these constraints is sparse, and recent conceptual arguments suggest that the horizon problem in particular may be less severe than commonly believed. Using surveys of members of three cooperatives, this study investigates the extent to which indicators of potential horizon and portfolio problems influence members’ preferences for cooperative investment in value-added processing technology. The evidence points to the existence of two types of horizon problems and two types of portfolio problems influencing cooperative members’ investment preferences.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 24
Date: 2015
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205427

DOI: 10.22004/ag.econ.205427

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