Liquidity, indebtedness and profitability of MSMEs in Ecuador: a comparative analysis
Article Sidebar
Main Article Content
Abstract
The objective of this research is to analyze the main financial, liquidity, indebtedness, management and profitability ratios of micro, small and medium-sized enterprises (MSMEs) in the Costa and Sierra regions of Ecuador using a quantitative approach of a descriptive and exploratory nature with data provided by 701 companies that registered their accounting and financial information to the Superintendency of Companies, Securities and Insurance in the year 2020. The results of this investigation showed that the general liquidity and strict liquidity of MSMEs in the Coast region are significantly higher than that shown by companies in the Sierra region. This study also showed that companies in the Sierra region have better returns, in terms of shareholder investment, than companies in the Coast; In addition, it was evidenced that there are no significant differences regarding the financing and administration of their assets. The conclusions of this research offer guidelines for future research on the factors that affect corporate profitability and business failure.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
COPYRIGHT NOTICE
Authors who publish in the INNOVA Research Journal keeps copyright and guarantee the journal the right to be the first publication of the work under the Creative Commons License, Attribution-Non-Commercial 4.0 International (CC BY-NC 4.0). They can be copied, used, disseminated, transmitted and publicly exhibited, provided that: a) the authorship and original source of their publication (magazine, publisher, URL and DOI of the work) is cited; b) are not used for commercial purposes; c) the existence and specifications of this license of use are mentioned.
References
Acedo Ramírez, M. Á., Ayala Calvo, J. C., y Rodríguez Osés, J. E. (2005). Rentabilidades, endeudamiento y coste de la deuda de las pymes: análisis empírico de las empresas por tamaños. Revista Europea de Direccion y Economia de la Empresa, 14(4), 185-200.
Alarussi, A. S., & Alhaderi, S. M. (2018). Factors affecting profitability in Malaysia. Journal of Economic Studies, 45(3), 442-458. https://doi.org/10.1108/JES-05-2017-0124
Ali, M. M., Hussin, N. N. A. N., & Ghani, E. K. (2019). Liquidity, growth and profitability of non-financial public listed Malaysia: A Malaysian evidence. International Journal of Financial Research, 10(3), 194-202. https://doi.org/10.5430/ijfr.v10n3p194
Almaqtari, F. A., Al-Homaidi, E. A., Tabash, M. I., & Farhan, N. H. (2019). The determinants of profitability of Indian commercial banks: A panel data approach. International Journal of Finance and Economics, 24(1), 168-185. https://doi.org/10.1002/ijfe.1655
Apan, M., & İslamoğlu, M. (2018). Determining the impact of financial characteristics on firm profitability: An empirical analysis on borsa Istanbul energy firms. WSEAS Transactions on Business and Economics, 15, 547-559.
Armijos-Solórzano, J. X., Narváez-Zurita, C. I., Ormaza-Andrade, J. E., y Erazo-Álvarez, J. C. (2020). Herramientas de gestión financiera para las MIPYMES y organizaciones de la economía popular y solidaria. Dominio de las ciencias, 6, 466-497.
Beaver, W. H. (1966). Financial ratios as predictors of failure. Journal of Accountin Research, 4, 71-111.
Beaver, W. H. (1968). Market prices, financial ratios, and the prediction of failure. Journal of Accounting Research, 6(2), 179-192.
Bernal-Domínguez, D., y Amat-Salas, O. (2012). Anuario de ratios financieros sectoriales en México para análisis comparativo empresarial. Ra Ximhai, 8(2), 267-281.
CEPAL. (2009). Manual de la Micro, Pequeña y Mediana Empresa.
Charitou, A., Neophytou, E., & Charalambous, C. (2004). Predicting corporate failure: empirical evidence for the UK. European Accounting Review, 13(3), 465-497. https://doi.org/10.1080/0963818042000216811
Chowdhury, M. A. F., & Rasid, M. E. S. M. (2015). The determinants of the profitability of Islamic banks: a cross-sectional study from Asia and Africa. Int. J. Business and Globalization, 15(3), 375-388. https://doi.org/10.1504/IJBG.2015.071913
do Prado, J. W., de Castro Alcântara, V., de Melo Carvalho, F., Vieira, K. C., Machado, L. K. C., &
Tonelli, D. F. (2016). Multivariate analysis of credit risk and bankruptcy research data: a bibliometric study involving different knowledge fields (1968–2014). Scientometrics, 106(3), 1007-1029. https://doi.org/10.1007/s11192-015-1829-6
Duque Espinoza, G., Córdova León, F., González Soto, K., y Aguirre Quezada, J. C. (2021). Cualidades gerenciales y su influencia en el desempeño empresarial. INNOVA Research Journal, 6(3), 155-170. https://doi.org/10.33890/innova.v6.n3.2021.1873
Endri, E., Lisdawati, Susanti, D., Hakim, L., & Sugianto, S. (2020). Determinants of profitability: Evidence of the pharmaceutical industry in Indonesia. Systematic Reviews in Pharmacy, 11(6), 587-597.
Flores-Romero, B., y González-Santoyo, F. (2019). Factores que afectan el desempeño de las MIPYME en Michoacán, México: un acercamiento a la teoría de los efectos olvidados. Revista Mexicana de Economía y Finanzas, 14(1), 95-112. https://doi.org/10.21919/remef.v14i1.361
Fontalvo Herrera, T., De la Hoz Granadillo, E., y Vergara, J. C. (2012). Aplicación de análisis discriminante para evaluar el mejoramiento de los indicadores financieros en las empresas del sector alimento de Barranquilla-Colombia. Ingeniare: Revista chilena de ingeniería, 20(3), 320-330.
Franco, M., Haase, H., & António, D. (2020). Influence of failure factors on entrepreneurial resilience in Angolan micro, small and medium-sized enterprises. International Journal of
Organizational Analysis. https://doi.org/10.1108/IJOA-07-2019-1829
Ghosh, C., & Guha, S. (2015). Determinants of profitability of the microenterprises led by women micro entrepreneurs: Evidence from Mumbai slums. International Journal of Entrepreneurship and Small Business, 24(4), 455-473. https://doi.org/10.1504/IJESB.2015.068631
González González, P., y Bermúdez, T. (2010). Fuentes de información, indicadores y herramientas más usadas por gerentes de Mipyme en Cali, Colombia. Contaduría y Administración, 232, 83–108.
González Sánchez, M., y Méndez Vásquez, M. (2017). Determinantes de la Rentabilidad Financiera de las MIPYMES de los Sectores Prioritarios en el Periodo 2012-2015. X-Pedientes Económicos, 1(1), 42-55. https://ojs.supercias.gob.ec/index.php/X-pedientes_Economicos/article/view/10
Guadalupe, J., Morales, X., Palacio, A., y Morales, D. (2018). Ecuador: Ciclo de vida de las MIPYMES en la última década. Sectores: vestimenta y alimentos (H. Arias Flores (ed.); Primera). Universidad Tecnológica Indoamérica.
Guarnizo Crespo, S. F., Tapia Ubillús, A. M., y Zambrano Farías, F. J. (2021). El desarrollo organizacional como herramienta para el cambio y la mejora de las empresas comerciales de Guayaquil. Opuntia Brava, 13(2), 63-74.
Instituto Nacional de Estadística y Censos - INEC. (2020). Directorio de Empresas y Establecimientos 2019. Ecuador en Cifras.
Islam, M., & Ullah, G. M. W. (2020). Debt and profitability: Evidence from Bangladesh. International Journal of Monetary Economics and Finance, 13(4), 362-382. https://doi.org/10.1504/ijmef.2020.109995
Jamali, A. H. (2012). Management efficiency and profitability in Indian automobile industry : from theory to practice. Indian Journal of Science and Technology, 5(5), 2779-2781.
Knezevic, A., & Dobromirov, D. (2016). The determinants of Serbian banking industry profitability. Economic Research-Ekonomska Istrazivanja, 29(1), 459-474. https://doi.org/10.1080/1331677X.2016.1174390
Kristanti, F. T., Rahayu, S., & Huda, A. N. (2016). The determinant of financial distress on Indonesian family firm. Procedia - Social and Behavioral Sciences, 219, 440-447. https://doi.org/10.1016/j.sbspro.2016.05.018
Lin, S., & Rowe, W. (2006). Determinants of the profitability of China’s regional SOEs. China Economic Review, 17(2), 120-141. https://doi.org/10.1016/j.chieco.2005.05.001
Marí Vidal, S., Mateos Ronco, A., y Polo Garrido, F. (2013). Análisis económico-financiero: supuestos prácticos. Universitat Politécnica de Valencia.
Meyer, R. L., y Magil, J. H. (2005). Microempresas y microfinanzas en Ecuador.
Mudjijah, S. (2017). Working capital management and profitability of companies: empirical study on corporate sub sectors of the food and drinks listed on the Indonesia stock exchange. International Journal of Economic Research, 14(4), 451-456.
Nindita, K. (2014). Prediction on Financial Distress of Mining Companies Listed in BEI using Financial Variables and Non-Financial Variables. European Journal of Business and Management, 6(34), 226-237.
Nitani, M., Riding, A., & Orser, B. (2020). Self-employment, gender, financial knowledge, and high-cost borrowing. Journal of Small Business Management, 58(4), 669-706. https://doi.org/10.1080/00472778.2019.1659685
Owolabi, S., & Obida, S. S. (2012). Liquidity management and corporate profitability: Case study of selected manufacturing companies listed on the Nigerian stock exchange. Business Management Dynamics, 2(2), 10-25. https://www.bmdynamics.com/issue_pdf/bmd110250-10-25.pdf
Papagiannidis, S., & Li, F. (2005). Skills brokerage: A new model for business start-ups in the networked economy. European Management Journal, 23(4), 471-482. https://doi.org/10.1016/j.emj.2005.06.002
Parra, J. F. (2011). Determinantes de la probabilidad de cierre de nuevas firmas en Bogotá. Revista Facultad de Ciencias Económicas, XIX(1), 27-53.
Romero Espinosa, F. (2013). Variables financieras determinantes del fracaso empresarial para la pequeña y mediana empresa en Colombia: análisis bajo modelo Logit. Pensamiento & Gestion, 34, 235-277.
Romero Martínez, M., Carmona Ibáñez, P., y Pozuelo Campillo, J. (2021). La predicción del fracaso empresarial de las cooperativas españolas. Aplicación del Algoritmo Extreme Gradient Boosting. CIRIEC-España, Revista de Economía Pública, Social y Cooperativa. (101). https://doi.org/10.7203/CIRIEC-E.101.15572
Salazar Mosquera, G. M. (2017). Factores determinantes del desempeño financiero en el sector manufacturero en la República del Ecuador. Panorama Económico, 25(2), 243-254.
Santana Viloria, L. (2017). Determinantes de la supervivencia de microempresas en Bogotá: Un análisis con modelos de duración. Innovar, 27(64), 51-62. https://doi.org/10.15446/innovar.v27n64.62368
Schreiner, M., & Woller, G. (2003). Microenterprise development programs in the United States and in the developing world. World Development, 31(9), 1567-1580. https://doi.org/10.1016/S0305-750X(03)00112-8
Shahnia, C., Purnamasari, E. D., Hakim, L., & Endri, E. (2020). Determinant of profitability: Evidence from trading, service and investment companies in Indonesia. Accounting, 6(5), 787-794. https://doi.org/10.5267/j.ac.2020.6.004
Shi, Y., & Li, X. (2019). A bibliometric study on intelligent techniques of bankruptcy prediction for corporate firms. Heliyon, 5(12), e02997. https://doi.org/10.1016/j.heliyon.2019.e02997
Susilo, D., Wahyudi, S., & Pangestuti, I. R. D. (2020). Profitability determinants of manufacturing firms in Indonesia. International Journal of Economics and Business Administration, 8(2), 53-64. https://doi.org/10.35808/ijeba/443
Suteja, J., Gunardi, A., & Octavia, R. A. (2017). Predicting the financial distress of Indonesian manufacturing companies: An application of the multinomial logit model. International Journal of Monetary Economics and Finance, 10(3-4), 250-256. https://doi.org/10.1504/IJMEF.2017.087475
Tambunan, T. (2007). Entrepreneurship Development: Smes in Indonesia. Journal of Developmental Entrepreneurship, 12(01), 95-118. https://doi.org/10.1142/s1084946707000575
Terán-Yépez, E., Marín-Carrillo, G. M., Casado-Belmonte, M. del P., & Capobianco-Uriarte, M. de las M. (2020). Sustainable entrepreneurship: Review of its evolution and new trends. Journal of Cleaner Production, 252. https://doi.org/10.1016/j.jclepro.2019.119742
Tong, Y., & Serrasqueiro, Z. (2021). Predictions of failure and financial distress: A study on portuguese high and medium-high technology small and midsized enterprises. Journal of International Studies, 14(2), 9-25. https://doi.org/10.14254/2071-8330.2021/14-2/1
Tudose, M. B., Rusu, V. D., & Avasilcai, S. (2022). Financial performance-determinants and interdependencies between measurement indicators. Business, Management and Economic Engeneering, 20(1), 119-138.
Uwingabiye, G., Nouwoue, G., & Uwingabiye, G. (2021). Is repeated borrowing better at improving MSMEs ’ performance and profitability ? A PAMF-CI case study from cote d ’ Ivoire. Journal of Development Effectiveness, 14(1), 19-33. https://doi.org/10.1080/19439342.2021.1937277
Valdés Díaz de Villegas, J. A., y Sánchez Soto, G. A. (2012). Las Mipymes en el contexto mundial: Sus particularidades en México. Iberóforum. Revista de Ciencias Sociales de la Universidad Iberoamericana, VII(14), 126-156. https://www.redalyc.org/pdf/2110/211026873005.pdf
Valls Martínez, M. del C., & Cruz Rambaud, S. (2019). Women on corporate boards and firm’s financial performance. Women’s Studies International Forum, 76, 102251. https://doi.org/10.1016/j.wsif.2019.102251
Xu, W., Xiao, Z., Dang, X., Yang, D., & Yang, X. (2014). Financial ratio selection for business failure prediction using soft set theory. Knowledge-Based Systems, 63, 59-67. https://doi.org/10.1016/j.knosys.2014.03.007
Zambrano-Farías, F. J., Sánchez-Pacheco, M. E., y Correa-Soto, S. R. (2021). Análisis de rentabilidad, endeudamiento y liquidez de microempresas en Ecuador. Retos, 11(22), 235-249. https://doi.org/10.17163/ret.n22.2021.03
Zambrano Farías, F. J., Sánchez Pacheco, M. E., & Valls Martínez, M. del C. (2021). Factors Explaining the Business Survival of MSMEs in Ecuador Factores Explicativos de la Supervivencia Empresarial de la Mipyme en Ecuador. Studies of Applied Economics, 39(8), 1-18. https://doi.org/10.25115/eea.v39i8.4061
Zambrano Farías, F. J., Valls Martínez, M. del C., & Martín Cervantes, P. A. (2021). Explanatory Factors of Business Failure: Literature Review and Global Trends. Sustainability, 13(18), 1-25. https://doi.org/10.3390/su131810154