University of Wisconsin Center for Cooperatives
Journal of Agricultural Cooperation

Title The Cooperative-Corporate Interface: Interfirm Contact Through Membership on Boards of Directors
Author(s) Julie A. Caswell
Series Volume 4
Issue Date 1989
Abstract Interfirm contact through membership on boards of directors is a means of increasing the expertise and information available in firm decision making. Data for a sample of 455 U.S. firms in 1976 show that levels of such contact varied widely among 212 large agribusinesses. Corporate firms in the sector, except those that were privately held, maintained significantly higher levels of director and firm contact through board membership than did cooperatives. The absence of a range of outside directors on cooperative boards the principles of democratic control but may have adverse effects on the quality of board decision making.

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