||Relationship of Pooling to Equity Capital and Current Assets of Large Producer Marketing Cooperatives
||Thomas L. Sporleder, William M. Malick, and Cynthia H. Tough
Committed marketing cooperatives have ensured member support and because of pooling may have higher leverage relative to buy-sell cooperatives. The hypothesis tested in this article is that marketing cooperatives with pooling have less market risk compared with those without pools and as a consequence can incur more financial risk and command greater leverage. Using an econometric approach to control for size of cooperative, empirical results suggest that pooling cooperatives have increased leverage, about 9 percent more than nonpooling cooperatives.