Assessing the willingness of non-members to invest in new financial products in agricultural producer cooperatives : A choice experiment

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Alho , E 2017 , ' Assessing the willingness of non-members to invest in new financial products in agricultural producer cooperatives : A choice experiment ' , Agricultural and Food Science , vol. 26 , no. 4 , pp. 207-222 . https://doi.org/10.23986/afsci.64945

Title: Assessing the willingness of non-members to invest in new financial products in agricultural producer cooperatives : A choice experiment
Author: Alho, Eeva
Contributor: University of Helsinki, Faculty of Agriculture and Forestry
Date: 2017
Language: eng
Number of pages: 16
Belongs to series: Agricultural and Food Science
ISSN: 1459-6067
URI: http://hdl.handle.net/10138/300031
Abstract: The sourcing of outside investment capital from non-members has motivated the emergence of innovative cooperative structures, but the literature on these new organizational forms omits the perspective of an outside investor. This paper reports a study that applied a choice experiment method in a novel setting to increase understanding of the preferences of investors in agricultural firms. A large questionnaire dataset consisting of 845 financially literate subjects enabled testing of the form in which residual and control rights provide incentives for non-producer investors to invest in agricultural firms. The choice experiment data were analyzed using a latent class model. The results demonstrate that the subjects were interested in the currently hypothetical, new types of investment instruments in agricultural producer cooperatives. Three investor classes were distinguished based on the preferences: return-seeking, ownership-oriented and risk-averse investors. Who controls the firm appears to be irrelevant concerning willingness to invest, while the rural ties of the respondent are positively related to the preference for voting rights.
Subject: agricultural cooperative
agribusiness
investment decisions
Q13
Q14
G11
ATTRIBUTE NON-ATTENDANCE
LATENT-CLASS MODEL
PREFERENCE HETEROGENEITY
SOCIAL IDENTITY
CONTROL RIGHTS
STATED CHOICE
MIXED LOGIT
HOME BIAS
OWNERSHIP
GERMANY
4111 Agronomy
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