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Do Corporate Governance Recommendations Apply to U.S. Agricultural Cooperatives?

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  • Jason R. V. Franken

    (School of Agriculture, Western Illinois University, 313 Knoblauch Hall, Macomb, IL 61455, USA)

  • Michael L. Cook

    (Division of Applied Social Sciences, University of Missouri, 125 Mumford Hall, Columbia, MO 65211, USA)

Abstract

A limited inquiry into cooperative governance and performance suggests that best practices from corporate governance literature may not apply uniformly to cooperatives. The rarely addressed issue of endogeneity limits confidence in recommendations for corporations and cooperatives alike and inference of recommendations for cooperatives is complicated by availability of appropriate performance measures. By accounting for the most commonly recognized sources of endogeneity and measuring overall cooperative performance, expectations of better performance by larger cooperatives with smaller boards are confirmed, while limited evidence is obtained on the expected positive effects of seating outside experts on the board.

Suggested Citation

  • Jason R. V. Franken & Michael L. Cook, 2019. "Do Corporate Governance Recommendations Apply to U.S. Agricultural Cooperatives?," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5321-:d:271036
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    References listed on IDEAS

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    3. Ovidiu-Constantin Bunget & Dorel Mateș & Alin-Constantin Dumitrescu & Oana Bogdan & Valentin Burcă, 2020. "The Link between Board Structure, Audit, and Performance for Corporate Sustainability," Sustainability, MDPI, vol. 12(20), pages 1-27, October.

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