Evaluation of the efficiency of European Union farms: a risk-adjusted return approach
The aim of this study was to assess the efficiency of EU member-state farms using a risk-adjusted return approach and to determine the impact of subsidies on the efficiency of EU farms. Farm efficiency was analysed by the member-state and by the type of farming and was based on the calculation of Sh...
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| Format: | Article |
| Language: | English |
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Czech Academy of Agricultural Sciences
2018-06-01
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| Series: | Agricultural Economics (AGRICECON) |
| Subjects: | |
| Online Access: | https://agricecon.agriculturejournals.cz/artkey/age-201806-0001_evaluation-of-the-efficiency-of-european-union-farms-a-risk-adjusted-return-approach.php |
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| author | Vilija ALEKNEVICIENE Birute STAREVICIUTE Egle ALEKNEVICIUTE |
| author_facet | Vilija ALEKNEVICIENE Birute STAREVICIUTE Egle ALEKNEVICIUTE |
| author_sort | Vilija ALEKNEVICIENE |
| collection | DOAJ |
| description | The aim of this study was to assess the efficiency of EU member-state farms using a risk-adjusted return approach and to determine the impact of subsidies on the efficiency of EU farms. Farm efficiency was analysed by the member-state and by the type of farming and was based on the calculation of Sharpe and Treynor ratios. Systemic risk was expressed by standard deviation in order to estimate the share of systemic risk in the total risk. The change in Sharpe ratios was assessed to determine the impact of subsidies on EU farm efficiency. The results of the risk-adjusted return analysis reveal that farms in the EU-15 were more efficient than farms in the EU-12 in 2004-2013, possibly due to being more experienced in risk management. Nevertheless, the EU-15 did not undertake a bigger share of systemic risk when compared to the EU-12 farms. The impact of financial support on the efficiency of the EU-12 farms was also not stronger when compared to the EU-15 farms. |
| first_indexed | 2024-04-10T08:37:43Z |
| format | Article |
| id | doaj.art-10642ad4dccf4da69e395cf26a6277ef |
| institution | Directory Open Access Journal |
| issn | 0139-570X 1805-9295 |
| language | English |
| last_indexed | 2024-04-10T08:37:43Z |
| publishDate | 2018-06-01 |
| publisher | Czech Academy of Agricultural Sciences |
| record_format | Article |
| series | Agricultural Economics (AGRICECON) |
| spelling | doaj.art-10642ad4dccf4da69e395cf26a6277ef2023-02-23T03:25:13ZengCzech Academy of Agricultural SciencesAgricultural Economics (AGRICECON)0139-570X1805-92952018-06-0164624125510.17221/272/2016-AGRICECONage-201806-0001Evaluation of the efficiency of European Union farms: a risk-adjusted return approachVilija ALEKNEVICIENE0Birute STAREVICIUTE1Egle ALEKNEVICIUTE2Institute of Economics, Accounting and Finance, Aleksandras Stulginskis University, Kaunas, LithuaniaInstitute of Economics, Accounting and Finance, Aleksandras Stulginskis University, Kaunas, LithuaniaDepartment of Finance, Vytautas Magnus University, Kaunas, LithuaniaThe aim of this study was to assess the efficiency of EU member-state farms using a risk-adjusted return approach and to determine the impact of subsidies on the efficiency of EU farms. Farm efficiency was analysed by the member-state and by the type of farming and was based on the calculation of Sharpe and Treynor ratios. Systemic risk was expressed by standard deviation in order to estimate the share of systemic risk in the total risk. The change in Sharpe ratios was assessed to determine the impact of subsidies on EU farm efficiency. The results of the risk-adjusted return analysis reveal that farms in the EU-15 were more efficient than farms in the EU-12 in 2004-2013, possibly due to being more experienced in risk management. Nevertheless, the EU-15 did not undertake a bigger share of systemic risk when compared to the EU-12 farms. The impact of financial support on the efficiency of the EU-12 farms was also not stronger when compared to the EU-15 farms.https://agricecon.agriculturejournals.cz/artkey/age-201806-0001_evaluation-of-the-efficiency-of-european-union-farms-a-risk-adjusted-return-approach.phpexcess returnfarm efficiencysharpe ratiosystemic risktotal risktreynor ratio |
| spellingShingle | Vilija ALEKNEVICIENE Birute STAREVICIUTE Egle ALEKNEVICIUTE Evaluation of the efficiency of European Union farms: a risk-adjusted return approach Agricultural Economics (AGRICECON) excess return farm efficiency sharpe ratio systemic risk total risk treynor ratio |
| title | Evaluation of the efficiency of European Union farms: a risk-adjusted return approach |
| title_full | Evaluation of the efficiency of European Union farms: a risk-adjusted return approach |
| title_fullStr | Evaluation of the efficiency of European Union farms: a risk-adjusted return approach |
| title_full_unstemmed | Evaluation of the efficiency of European Union farms: a risk-adjusted return approach |
| title_short | Evaluation of the efficiency of European Union farms: a risk-adjusted return approach |
| title_sort | evaluation of the efficiency of european union farms a risk adjusted return approach |
| topic | excess return farm efficiency sharpe ratio systemic risk total risk treynor ratio |
| url | https://agricecon.agriculturejournals.cz/artkey/age-201806-0001_evaluation-of-the-efficiency-of-european-union-farms-a-risk-adjusted-return-approach.php |
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