Testing for the Presence of Financial Constraints in US Agricultural Cooperatives: An Investment Behaviour Approach
Abstract
This study examines the presence of financial constraints in US agricultural cooperatives. We test the cooperative capital constraint hypothesis with a panel data econometric analysis of agricultural cooperatives' investment behaviour. Regression results suggest that agricultural cooperatives' capital expenditures are significantly affected by the availability of internal funds. Results also indicate that the sensitivity of investment to cash flow is correlated with cooperative structural characteristics.
Citation
Journal of Agricultural Economics, Vol. 56, No. 3, 2005, 385-397.