Template-Type: ReDIF-Paper 1.0
Author-Name: Hendrikse, G.W.J.
Author-Name-Last: Hendrikse
Author-Name-First: George
Author-Name: Veerman, C.P.
Author-Name-Last: Veerman
Author-Name-First: Cees
Title: Marketing Cooperatives and Financial Structure
Abstract: The relationship between the financial structure of a marketing cooperative (MC) and the requirement of the domination of control by the members is analysed from a transaction costs perspective. A MC receives less favorable terms on outside equity than a conventional firm because the decision power regarding new  investments is not allocated to the providers of these funds. This is a serious threat to the survival of a MC in a market where efficient investments are characterized by an increasing level of asset specificity at the processing stage of production. A MC is predicted to be an efficient organizational form when the level of asset specificity at the processing stage of production is at a low or immediate level compared to the level of asset specificity at the farming stage of production.
Creation-Date: 2000-05-12
File-URL: https://repub.eur.nl/pub/19/erimrs20000512121453.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2000-09-ORG
Classification-JEL: D2, G3, L2, M, M10
Keywords: finance, marketing cooperative, transaction costs economics
Handle: RePEc:ems:eureri:19