Which legal form of agricultural firm based on return on equity should be preferred? A panel data analysis of Slovak agricultural firms
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This paper examines the impact of the legal form of agricultural firms on the benefit to their owners for a panel of Slovak agricultural firms. We use return on equity (ROE) as a measure of the benefit to owners. Using the repeated measures ANOVA technique, we find that the legal form of a firm is a relevant determinant of the benefit to owners. We conclude that from the point of view of ROE the legal form ‘company’ is preferable over ‘cooperative’.