Steele Christian West
Thesis: Effect of Capital Structure on Farm Productivity, Efficiency and Financial Performance in Western Australia
The purpose of the proposed study is to complement and extend prior literature that details the impact of capital structure (the manner by which a firm finances its assets, through equity, debt, or a combination thereof) on economic efficiency (the use of resources to maximize production), financial performance (return on assets and returns on equity), and total factor productivity (effects on total output not induced by inputs).
The proposed study will focus on individual farm level data from south west Western Australia broadacre farm operations.
The objective of this research is to investigate the impact of capital structure on farm efficiency, financial performance, and productivity through the application of methods not previously applied in the context of Western Australian agriculture.
Why my research is important
In the context of increased indebtedness of Western Australian farms and long term declines in terms of trade, the viability of farm business is determined by their efficiency in the allocation of resources and their technological advancement.
This research proposes to offer insight as to the impact of debt on farmers capacity to remain competitive.