Quote from this report:
"The Conversion of DiamondWalnut Growers
Shermain D. Hardesty
Three aspects of property rights theory are particularly relevant to the conversion
of the walnut-marketing cooperative, Diamond Walnut Growers (DWG),
into a publicly traded stockholder-owned corporation. The horizon problem became
apparent when DWG began investing heavily in branded, value-added products.
The resulting need for additional member capital raised the free rider problem.
The principal-agent problem was also relevant, given the increasing complexity of
DWG’s financing and marketing activities. An additional economic issue surrounding
the conversion was the monopsonistic situation created when members signed
long-term marketing agreements with the new firm that was maximizing shareholder
value, rather than grower returns."
Give me a break....Only liberal college professors and the airheads that listen to their nonsense, could think that a publically held corp has a duty to maximize the profits of its suppliers (growers) rather than its shareholders. The former students of these clowns are now in control of the highest levels of our government and bureaucracy. We have forgotten a very important lesson.......... “Those who can't do, teach.”