RESEARCH ON THE EFFECTIVENESS OF COOPERATIVES AND LIMITED LIABILITY COMPANIES IN THE AGRICULTURAL SECTOR

Abstract

This article aims to study companies with the form of management "cooperative" and "limited liability company" (Ltd.). Cooperatives are created as associations of consumers and small producers to achieve certain economic and social goals that could not be individually accomplished. While Ltd. arises in a specific way. It is created in an artificial way (by legislation), as it arises first as a legal entity and then as an economic entity. This article examines cooperatives and limited liability companies, representatives of the agricultural sector. In order to study the activity of which company is more effective, a comparative analysis of financial indicators of profitability and productivity is made. Some control variables are also studied, such as investments in fixed assets, size and age of companies, since they also influence the economic results of the activities of agricultural companies. The period of the study covers the first and second programming periods of the EU CAP (2007 - 2020). The expected results are that representatives of agricultural cooperatives realize higher financial results than the representatives of the Ltd.