Research On The Transaction Costs And Governance Mechanism Of Farmers Cooperatives

At present, China’s development of farmers’ cooperatives is still at primary stage of specification development, compared with the overseas cooperatives at mature stage, our cooperatives are obviously left behind in terms of internal governance structure and governance mechanisms. The imperfection of the governance structure and governance mechanisms is a common problem which influences cooperatives’ vitality, cohesion and market competitiveness, what’s worse, restricts the cooperatives’functions.Based on the literature review of relationship between cooperative governance mechanisms and transaction costs, the paper also uses logical deductive method to describe the relationship between them. The paper conducts research on a professional citrus cooperatives in Yichang, construct a theoretical model for professional farmers cooperatives governance preliminary, the paper decomposes governance mechanisms into six indicators of management mechanism, decision-making mechanism, internal oversight mechanisms, incentives, profit distribution mechanism and system of property rights, evaluating the indicators of farmers professional cooperatives governance mechanism and its transaction costs in the model by using comparative static analysis. And analyzes the development of the cooperative by case analysis, explore the governance mechanisms of cooperatives which are still need to improve. At last, the paper inductively analyzes the development and governance mechanisms of the Sunkist citrus cooperatives, as well as the inspiration for building favourable governance mechanism in domestic cooperatives.The innovation of this paper may have the following aspects:(1)this paper measure the transaction costs scientific and reasonable from the point of view of accounting, on the basis of the existing literature get improvement and breakthrough, propose using monetary and non-monetary measurement, the absolute amount and the relative number measurement methods.(2) referencing to other literature, this paper join two mechanism of the form of wages of employees and whether the cooperatives provide training of knowledge and technical for members when designing professional farmers’ cooperatives internal governance mechanisms indicators, showing the incentive mechanism of cooperatives to employees and members.(3) on the basis of applied research of the transaction costs, this paper analyzes effectiveness of the professional farmers’ cooperatives’ governance mechanisms from the point of view of the efficiency of the transaction, explore the relationship between indicator variables and the transaction efficiency of the cooperative governance mechanisms, provides a new perspective for cooperatives governance research. The study will deepen people’s understanding of the governance mechanisms of professional farmers cooperatives, by clarifying the problems and underlying causes of China’s farmers’ professional cooperatives governance to reveal the innovative direction of farmers’ professional cooperatives’ governance structure, and seeking ideas to improve the governance mechanism which will also provide theoretical guidance to domestic cooperatives’ development.