Equity Management Practices in Italian Agricultural Cooperatives: A Cluster Analysis Approach

Carlo Russo and Massimo Sabbatini

No 24802, 2002 International Congress, August 28-31, 2002, Zaragoza, Spain from European Association of Agricultural Economists

Abstract: In this paper, equity management practices of Italian agricultural cooperatives are described and discussed. Financial statements of 1.483 cooperatives are analyzed in order to provide empirical support to the study. Data confirm cooperative undercapitalization and disclose the existence of diversity in equity management practices even within the same business sector. Thus, in order to highlight the relations between cooperative market strategies and equity management practices a cluster analysis is proposed. Seven main strategic approaches for Italian cooperatives are identified and the emerging equity management practices are discussed. The empirical analysis supports the conclusion that a large number of Italian are implementing "perverse" approaches, such as dependence from public funding and minimization of equity and investments. Considering increasing competition, without an innovative equity management approach, the majority of the analyzed cooperative is expected to suffer of relevant competitive disadvantage.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 15
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae02:24802

DOI: 10.22004/ag.econ.24802

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