Research article - Peer-reviewed, 2012
Chain interdependencies, measurement problems and efficient governance structure: cooperatives versus publicly listed firms
Feng, Li; Hendrikse, GeorgeAbstract
We determine the circumstances when the absence of public listing, often believed to be a disadvantage, makes a cooperative the unique efficient governance structure. This is established in a multi-task principalagent model, capturing that cooperatives are not publicly listed and their CEOs have to bring the downstream enterprise to value as well as to serve upstream member interests. Not having a public listing prevents the CEO from choosing the level of the downstream activities too high. Cooperatives are uniquely efficient when the upstream marginal product multiplied with a function increasing in the strength of the chain complementarities is higher than the downstream marginal product.Keywords
chains; measurement; governance; cooperatives; D21; L23; Q13Published in
European Review of Agricultural Economics2012, volume: 39, number: 2, pages: 241-255
Publisher: OXFORD UNIV PRESS
Authors' information
Feng, Li
Swedish University of Agricultural Sciences, Department of Economics
Hendrikse, George
UKÄ Subject classification
Economics
Publication Identifiers
DOI: https://doi.org/10.1093/erae/jbr007
URI (permanent link to this page)
https://res.slu.se/id/publ/39969