IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v35y2014i2p145-160.html
   My bibliography  Save this article

Private Equity and Asset Characteristics: The Case of Agricultural Production

Author

Listed:
  • Mario P. Mondelli
  • Peter G. Klein

Abstract

Unlike most other mature industries, family firms, partnerships, and cooperatives dominate the agricultural production sector, with few corporations and limited access to capital derived from a source other than retained earnings and existing owners. However, the use of external equity capital in agriculture has increased dramatically since 1990. This funding source allows farms to exploit entrepreneurial opportunities not easily financed by debt. Following O. Williamson, we view debt and equity as alternative governance structures and argue that transaction cost economics offers insights on firms' financial structure beyond those provided by agency theory. We relate capital structure to asset specificity, a particularly important attribute in agricultural production. We construct an international dataset of agricultural companies receiving external private equity and show that the attributes of the assets involved in production are important determinants of financial structure. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Mario P. Mondelli & Peter G. Klein, 2014. "Private Equity and Asset Characteristics: The Case of Agricultural Production," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(2), pages 145-160, March.
    • Handle: RePEc:wly:mgtdec:v:35:y:2014:i:2:p:145-160
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhuo Chen & Bo Yan, 2022. "The impact of trade policy on soybean futures in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1152-1163, June.
    2. Iciar Pavez & Jean Marie Codron, 2018. "Contractual price provisions and their determinants in conditions of uncertainty: the case of Chilean fruit exports [Dispositions contractuelles sur les prix et leurs déterminants dans des conditio," Post-Print hal-02618927, HAL.
    3. Dmitry A. Ruban & Natalia N. Yashalova, 2022. "Corporate Web Positioning as a Strategic Communication Tool in Agriculture," Agriculture, MDPI, vol. 12(8), pages 1-16, July.
    4. Felix K. Thiele, 2017. "Family businesses and non-family equity: literature review and avenues for future research," Management Review Quarterly, Springer, vol. 67(1), pages 31-63, February.
    5. Simone Boccaletti, 2021. "Asset Specificity and the Secondary Market for Productive Assets," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(3), pages 411-437, November.
    6. Schickinger, Antonia & Leitterstorf, Max P. & Kammerlander, Nadine, 2018. "Private equity and family firms: A systematic review and categorization of the field," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 268-292.

    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:wly:mgtdec:v:35:y:2014:i:2:p:145-160. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.