Post-merger performance of agricultural cooperatives

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14 Scopus citations


During the 1990s, the rate of consolidation among agricultural cooperatives, including mergers, acquisitions, strategic alliances, and joint ventures, increased significantly. While post-merger performance has been examined extensively for investor-owned firms, this has not been the case for agricultural cooperatives, primarily because these firms do not have an explicit profit motive or publicly traded stock. Results from a two-stage econometric model reveal that a major motivation for cooperatives to engage in these activities is to circumvent capital constraints. Furthermore, the decision to merge and financial performance are jointly endogenous, with profitability positively influenced and sales growth negatively influenced by the likelihood of merger.

Original languageEnglish (US)
Pages (from-to)175-192
Number of pages18
JournalAgricultural Finance Review
Issue number2
StatePublished - Nov 1 2003


  • Acquisitions
  • Capital constraints
  • Cooperatives
  • Financial performance
  • Joint ventures
  • Mergers
  • Multinomial logit modeling
  • Strategic alliances

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)


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