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

Azzeddine M. Azzam and Michael S. Turner

Journal of Agricultural Cooperation, 1991, vol. 06, 10

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.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 1991
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