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Provedor de dados:  AgEcon
País:  United States
Título:  Determinants of the Strength of Strategic Adjustments in Farm Capital Structure
Autores:  Escalante, Cesar L.
Barry, Peter J.
Data:  2008-07-14
Ano:  2003
Palavras-chave:  Business risk
Correlation coefficient measure of risk balancing
Expected utility mean variance model
Financial risk
Risk management strategy
Stochastic interest rates
Strategic capital adjustment
D21
D81
G11
Q12
Q14
Resumo:  This study employs correlation relationships to measure the strength of trade-offs between business and financial risks as a representative of the strategic capital adjustment process. Under different business risk measures based on varying lengths of historical farm income data, results suggest that farmers tend to adopt a myopic perspective when contemplating risk-balancing plans. Cross-sectional regression results for two-time period models covering the decade of the 1980s and 1990s yielded important implications. The liquidity-constrained environment of the 1980s emphasizes the combination of risk-balancing plans, specialization, and market revenue-enhancing strategies. In the 1990s, risk balancing becomes compatible with risk-reducing crop diversification and insurance protection plans.
Tipo:  Journal Article
Idioma:  Inglês
Identificador:  http://purl.umn.edu/37834
Relação:  Journal of Agricultural and Applied Economics>Volume 35, Number 01, April 2003
Formato:  12
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