What drives the acquisition behavior of agroholdings? Performance analysis of agricultural acquisition targets in Northwest Russia and Ukraine

This article provides pioneering empirical evidence on the selection of acquisition targets by agroholdings in transition economies. We use panel data from Ukraine and Northwest Russia covering the years 2005-2016. Binomial logistic regression models were estimated to analyze the impacts of farm cap...

Full description

Saved in:
Bibliographic Details
Published in:The international food and agribusiness management review 2021-05, Vol.24 (4), p.593-613
Main Authors: Ostapchuk, Igor, Gagalyuk, Taras, Epshtein, David, Dibirov, Abusupyan
Format: Article
Language:English
Subjects:
acquisition target selection
agroholdings
Northwest Russia
pre-acquisition performance
RESEARCH ARTICLE
Ukraine
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This article provides pioneering empirical evidence on the selection of acquisition targets by agroholdings in transition economies. We use panel data from Ukraine and Northwest Russia covering the years 2005-2016. Binomial logistic regression models were estimated to analyze the impacts of farm capital strength, financial performance and size on the farm’s likelihood of being acquired by an agroholding. Our results indicate that agroholding target selection considerations tend to change over time and have shifted from farm size to farm performance in both countries. However, agroholdings in both countries prefer to ‘grab lemons’, i.e. acquire poorly performing farms, but they differ with respect to target selection criteria. Agroholdings in Northwest Russia tend to focus on farm profitability, while their Ukrainian counterparts emphasize the capital structure of the target farms.
ISSN:1559-2448
1559-2448
DOI:10.22434/IFAMR2020.0081