The Restructuring of the Saskatchewan Wheat Pool: Overconfidence and Agency
| dc.creator | Fulton, Murray E. | |
| dc.creator | Larson, Kathy A. | |
| dc.date | 2017-04-01T18:54:26Z | |
| dc.date.accessioned | 2026-07-09T05:02:27Z | |
| dc.description | This paper examines how agency problems combined with overconfidence and hubris by coop management lead to financial failure in the Saskatchewan Wheat Pool. As a consequence of both of these problems, the Pool made poor investment decisions and ended up in severe financial difficulties. These problems were exacerbated by three additional factors: (1) ownership and control were separated via an A-B share structure, leading to a situation where neither farmer members nor investors had an incentive to monitor management activities; (2) the sheer volume of investment activity undertaken made it virtually impossible for the board to stay on top of what was happening; and (3) as a result of the change financial structure, senior management had available a large amount of debt capital that it could spend. | |
| dc.identifier | doi:10.22004/ag.econ.56886 | |
| dc.identifier | https://ageconsearch.umn.edu/record/56886/files/FultonLangSWP.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/56886 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/558181 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/56886 | |
| dc.title | The Restructuring of the Saskatchewan Wheat Pool: Overconfidence and Agency | |
| dc.type | Text |