IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v50y1968i3p491-506..html
   My bibliography  Save this article

The Impact of Managerial Ability and Capital Structure on Growth of the Farm Firm

Author

Listed:
  • George F. Patrick
  • Ludwig M. Eisgruber

Abstract

A simulation model of farm firm behavior in a dynamic environment with elements of uncertainty was developed. The decision maker's formulation of expectations regarding future prices and yields, his selection of alternative farm plans, evaluation of the expected outcomes of the plans with respect to four goals, and implementation of the plan offering the highest level of overall satisfaction are explicitly considered. The expectations, goals, and resource position of the firm are adjusted to reflect the outcome of the particular plan implemented, and the process is repeated for the next year. A case was simulated for a period of 20 years under three different levels of managerial ability and 27 different capital market structures. It is concluded that managerial ability and long-term loan limits are the major factors, among those considered, influencing farm firm growth.

Suggested Citation

  • George F. Patrick & Ludwig M. Eisgruber, 1968. "The Impact of Managerial Ability and Capital Structure on Growth of the Farm Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 491-506.
    • Handle: RePEc:oup:ajagec:v:50:y:1968:i:3:p:491-506.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1238255
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:50:y:1968:i:3:p:491-506.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.