Factors Associated with the Financial Performance of Commercial Firms in Ecuador

다국어 초록 (Multilingual Abstract)

We examine factors of the financial performance of the Ecuadorian commercial firms during the period of 2011-2016. Using both return on assets and return on sales as proxy for firm performance, we found that firm performance is affected negatively by leverage while it is influenced positively by liquidity, inventory, and sales growth. Our results are mostly consistent with experience of other countries, specially the U.S., Russia, and Korea except inventory. The U.S. firms show a negative coefficient of inventory with the financial performance.(Tailab, M., 2014) One possible reason is that the data in the study is unlisted firms in Ecuatorian stock markets. The source of information is the Superintendence of Companies, Securities, and Insurances which is an Ecuadorian government institution. They allow the information of those unlisted firms be released only.

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