Profitability of Cooperatives and Investor-Owned Firms in the Greek Dairy Industry

Comparison between the factors affecting cooperative and investor-owned firms (IOFs) profitability has not been examined in a particular market by empirical studies. This paper examines the determinants of profitability of cooperative and IOFs in the Greek dairy industry in the period 1990- 94. The results show that IOFs, in contrast to the cooperatives, apply effectively competitive strategies (advertising and diversification) to increase their profitability