Performance of Different Institutional Units in the Czech Republic and the Role of External Financing

Sophia Davidova, Laure Latruffe and Tomas Ratinger

No 24421, 94th Seminar, April 9-10, 2005, Ashford, UK from European Association of Agricultural Economists

Abstract: The paper analyses the relationship between the financial structure of the different institutional units in the Czech Republic and their performance, by testing several theoretical hypotheses. It employs Data Envelopment Analysis to estimate separately corporate and individual farms' technical efficiency, and investigates the effect of indebtedness on efficiency in a second stage, accounting for potential endogeneity. No substantial differences were detected between individual and corporate farms. For both groups higher long-term indebtedness negatively affects farm performance (agency theory and adjustment hypothesis), while the latter is used for appraising loan applications (credit evaluation). Case studies to banks and farms confirmed these findings.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 15
Date: 2005
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Citations: View citations in EconPapers (1)

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Working Paper: Performance of different institutional units in the Czech Republic and the role of external financing (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae94:24421

DOI: 10.22004/ag.econ.24421

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