MEASURING SYSTEMATIC RISK OF UNQUOTED AGRICULTURAL FARMS

Review of Agricultural and Applied Economics, RAAE, VOL.17, No. 1/2014

ARTICLE TYPE: REGULAR ARTICLE
RECORD ONLINE: 29.03.2014
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KEYWORDS:
systematic risk, unquoted agricultural farms, return on equity
DOI NUMBER:
10.15414/raae.2014.17.01.31-34
ABSTRACT:
In this paper we estimate systematic risk of the Slovak unquoted agricultural farms – agricultural cooperatives and companies, in the period of 2009-2012. An alternative Markowitz portfolio theory approach was applied. As a measure of the systematic risk, we used return on equity (ROE). Based on the dataset of 996 farms over years 2009-2012, the Slovak farm average ROE reached 0.048% and systematic risk 3%. The Slovak agricultural farms displayed low profitability. The average ROE was higher and systematic risk indicator was lower for agricultural companies than for agricultural production cooperatives. Thus the agricultural companies could be more attractive for investors.
JEL CODES:
R52, R58, H41
PAGES:
31 - 34
Please Cite this Article as:

Marián Tóth, Drahoslav Lančarič, Andrea Piterková, Radovan Savov, Tomáš Rábek (2014) Measuring Systematic Risk Of Unquoted Agricultural Farms. Review of Agricultural and Applied Economics. XVII (Number 1, 2014): 31-34. doi: 10.15414/raae.2014.17.01.31-34
URL for sharing:

https://roaae.org/1336-9261/doi/abs/10.15414/raae.2014.17.01.31-34

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Review of Agricultural and Applied Economics | ISSN 1336-9261
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia.
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