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COOPERATIVES – UNDER PERFORMERS BY NATURE? AN EXPLORATORY ANALYSIS OF COOPERATIVE AND NON‐COOPERATIVE COMPANIES IN THE AGRI‐BUSINESS SECTOR
Author(s) -
Hind A. M.
Publication year - 1994
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1994.tb00395.x
Subject(s) - profitability index , business , market liquidity , creditor , working capital , debtor , industrial organization , stock (firearms) , accounting , finance , debt , mechanical engineering , engineering
This paper sets out to determine whether agricultural cooperative companies in the UK are more likely to underperform when compared with non‐cooperative companies in the same sector. The research indicates, that on the basis of profitability, capital gearing and liquidity, there were no significant differences between the two groups. For the business operational efficiency indicators of sales/working capital ratios, and creditor ratios, there were also no significant differences although, for the indicators of stock turnover and debtor ratios, cooperatives were seen to have significantly higher rates when compared with the non‐cooperative companies. The findings of this research reveal that cooperatives do not perform differently to non‐cooperatives, despite being required to balance member needs with the attainment of corporate goals.