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Abstract
New Generation Cooperatives (NGCs) are undergoing several structural changes with the
acceptance of non-farmer investor equity and demutualization or transformation into investororiented
ownerships, Limited Liability Companies (LLCs), to ameliorate perceived financial
constraints for high technology investments. Using data of stock traded between members, we
developed a model of investment decision and analyzed the impacts of expectations of change in
growth and social capital, among other variables, on NGC and LLC performance. The findings
show the importance of expectations of change in growth on firms’ performance for NGCs
compared to LLCs. Social capital arising from market transactions play a significant role in
building loyalty among current investors and in attracting additional infusion of equity capital for
NGCs.