Investment Activity and Ownership Structure of Czech Corporate Farms

Jarmila Curtiss, Laure Latruffe, Tomas Medonos and Tomas Ratinger

No 7826, 104th Seminar, September 5-8, 2007, Budapest, Hungary from European Association of Agricultural Economists

Abstract: This paper aims at assessing the relationship between ownership structure, performance and investment activity. In particular it studies how behavioural differences between farms related to ownership structure influence farms' investment activity and thus their further development potential resulting in farm structural changes. The paper analyses a sample of corporate farms over 7 years, 1997-2003, using structural model of three equations including investment accelerator model. This model considers the effect of ownership on (a) technical efficiency as proxy for the quality of operational management, (b) returns on capital as proxy for quality of financial management, (c) investment activity, and (d) investment sensitivity to internal funds as proxy for owners/managers opposition to credit financing. The empirical results provide evidence of a theoretically justifiable positive effect of ownership concentration on investment activity and farms' economic performance, and a theoretically consistent effect of external/employee ownership on technical performance. However, the authors are not able to confirm empirically the theoretically based effect of external/employee ownership on farm investment activity.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Pages: 16
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/7826/files/sp07cu01.pdf (application/pdf)

Related works:
Working Paper: Investment activity and ownership structure of Czech corporate farms (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa104:7826

DOI: 10.22004/ag.econ.7826

Access Statistics for this paper

More papers in 104th Seminar, September 5-8, 2007, Budapest, Hungary from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().