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Capital structure, business risk, and investor returns for agribusinesses
Author(s) -
Forster D. Lynn
Publication year - 1996
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/(sici)1520-6297(199609/10)12:5<429::aid-agr3>3.0.co;2-8
Subject(s) - agribusiness , economics , financial economics , business , econometrics , agriculture , ecology , biology
The effects of firm capital structure and business risk on investors' rates of return in agribusiness from 1984 to 1993 are investigated. Measures of firm solvency and liquidity and a measure of business risk are used to explain risk adjusted excess rates of return for agribusiness investors. Results confirm the hypothesis that the capital structure and business risk of agribusiness firms are important determinants of returns to common stock owners. © 1996 John Wiley & Sons, Inc.