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Agency Theory Issues in the Food Processing Industry

Published online by Cambridge University Press:  26 January 2015

Michael A. Boland ,
Bill B. Golden  and
Leah J. Tsoodle
Michael A. Boland
Affiliation:
Kansas State University
Bill B. Golden
Affiliation:
Kansas State University and Texas
Leah J. Tsoodle
Affiliation:
Department of Agricultural Economics at Kansas State University
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Abstract

The objective is to identify significant determinants of performance for food processing firms over the 1992 to 2003 time period, focusing particularly on the issue of family control. Variables measuring firm effects such as asset size, governance, income distribution, and risk are used to explain return on equity. This study builds upon previous research by including a measure of income distribution in the food processing industry. Governance variables are found to be significant determinants of return on equity. The results found no evidence of agency problems in family-controlled firms during this time period.

Keywords

agribusinessinstitutional economicsorganizational economicsD23G34Q13Q14
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 40 , Issue 2 , August 2008 , pp. 623 - 634
Copyright
Copyright © Southern Agricultural Economics Association 2008

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