|
|
|
|
||||
|
||||
Chain Interdependencies, Measurement Problems, and Efficient Governance Structure: Cooperatives Versus Publicly Listed FirmsGeorge W.J. HendrikseErasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM) January 17, 2011 ERIM Report Series Reference No. ERS-2011-001-ORG Abstract: We determine the circumstances when the absence of public listing, often believed to be a disadvantage, makes a cooperative the unique efficient governance structure. This is established in a multi-task principal-agent model, capturing that cooperatives are not publicly listed and their CEOs have to bring the downstream enterprise to value as well as to serve upstream member interests. Not having a public listing prevents the CEO from choosing the level of the downstream activities too high. Cooperatives are uniquely efficient when the upstream marginal product multiplied with a function increasing in the strength of the chain complementarities is higher than the downstream marginal product.
Number of Pages in PDF File: 18 Keywords: chains, measurement, governance, cooperatives JEL Classification: M13, O32, M working papers seriesDate posted: March 28, 2011Suggested CitationContact Information
|
|
|||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo5 in 0.500 seconds
