A Study on the Determinants of Financial Performance of U.S. Agricultural Cooperatives

Journal of Business Economics and Management, 20(4), 633-647, 2019

15 Pages Posted: 6 Jun 2019

See all articles by Kuldeep Singh

Kuldeep Singh

Indian Institute of Information Technology, Allahabad; Shiva Institute of Management Studies

Madhvendra Misra

Indian Institute of Information Technology (IIIT), Allahabad

Mohit Kumar

Indian Institute of Information Technology, Allahabad

Vineet Tiwari

Indian Institute of Information Technology, Allahabad

Date Written: May 13, 2019

Abstract

A significant number of studies have been made in the area of agricultural economics; however, there is a paucity of work that investigates factors or determinants which influence the financial performance of agro cooperatives. This paper investigates determinants of financial performance for the United States (U.S.) agricultural cooperatives for the period 2009-2017. By using the United States Department of Agriculture (USDA) database, we created a sample of 37 U.S. agro cooperatives. For analysis, we used panel regression analysis as it is suitable to deal with fixed effect or random effect error component presented in the model. Finding states that the U.S. agro cooperatives are found highly sensitive to economic policy uncertainty. The results provide evidence of a negative relationship between size and profitability. Moreover, the impact of growth and capital intensity is also reflected in the return on asset (ROA). In this study, we considered ROA as a proxy for firm performance. Implications and suggestions for further new research are also discussed.

Keywords: Agricultural Cooperatives, Financial Performance, Economic Policy Uncertainty, Return on Asset (ROA), United States (U.S.), Capital Intensity

JEL Classification: M21, P34, Q13, Q14

Suggested Citation

Singh, Kuldeep and Misra, Madhvendra and Kumar, Mohit and Tiwari, Vineet, A Study on the Determinants of Financial Performance of U.S. Agricultural Cooperatives (May 13, 2019). Journal of Business Economics and Management, 20(4), 633-647, 2019, Available at SSRN: https://ssrn.com/abstract=3390720

Kuldeep Singh (Contact Author)

Indian Institute of Information Technology, Allahabad ( email )

Deoghat
Jhalwa
Allahabad, Uttar Pradesh 211012
India
9650706700 (Phone)
211012 (Fax)

HOME PAGE: http://sites.google.com/view/ks9650

Shiva Institute of Management Studies ( email )

Ghaziabad, IN 201001
India

Madhvendra Misra

Indian Institute of Information Technology (IIIT), Allahabad ( email )

Deoghat
Jhalwa
Allahabad, Uttar Pradesh 211012
India

Mohit Kumar

Indian Institute of Information Technology, Allahabad ( email )

Deoghat
Jhalwa
Allahabad, Uttar Pradesh 211012
India
211012 (Fax)

Vineet Tiwari

Indian Institute of Information Technology, Allahabad ( email )

Deoghat
Jhalwa
Allahabad, Uttar Pradesh 211012
India
211012 (Fax)

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