Governance Control Mechanisms in Portuguese Agricultural Credit Cooperatives

Hence, we estimate the following multinomial logit:

Prob (Yi = 0, 1, 2, 3, 4, 5) = F (X1, X2, X3, X4, X5, Control variables) (1)

3.2. Data

The analysis addresses the 1995-2003 period. Data refers to the end of the year and are all
expressed in 1995 prices. The balance sheet data was collected from the ACCs annual reports and
information on the mergers, board or chairman change and central ACCs intervention from
“Diario da Repùblica”^8. We excluded from the sample data 25 ACCs from 1998, because of data
missing from their annual financial reports, plus 99 observations corresponding to different
ACCs-years, as we were not able to obtain their chairman or management board configuration.

At the end of this process we had a pool of 1,239 observations from 9 years of unbalanced
allocation: a) 929 observations corresponding to ACCs not experiencing any governance
intervention; b) 51 corresponding to ACCs with board change; c) 61 chairman change; d) 51
ACCs with central ACC intervention by an agent; e) 79 ACCs Central ACC intervention by a
management board replacement; and f) 68 ACCs participating in a merger. Summary statistics
for the sample are reported in Table 1.

Table 1. Summary statistics

Not intervened ACCs

⁸ Official legislative journal of the Portuguese government.

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