EFFECTS OF MANAGERS' POWER ON CAPITAL STRUCTURE: A STUDY OF ITALIAN AGRICULTURAL COOPERATIVES

Excessive leverage is one of the most important problems facing Italian agricultural cooperatives as the competition in the EU intensifies. An empirical study of 500 agricultural cooperatives supports the hypothesis that cooperatives characterized as having "powerful managers" have a capital structure that is significantly different from the "nonpowerful manager" cooperatives. Powerful manager cooperatives were less leveraged and had a long term strategy that focused on minimizing financial risk by increasing their equity/asset ratio. The result of this strategy is an increased probability of long term international competitiveness.


Subject(s):
Issue Date:
2000
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/34565
PURL Identifier:
http://purl.umn.edu/34565
Published in:
International Food and Agribusiness Management Review, 03, 1
Page range:
27-39
Total Pages:
13




 Record created 2017-04-01, last modified 2020-10-28

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