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The determinants of EVA in ecuadorian media enterprises in the period 2015-2018

Abstract:

This paper studies the determinants of economic value added (EVA) in Ecuadorian companies in sector J (Communication and Information) in the period 2012-2018. A panel data estimate was used using fixed effects, the dependent variable being EVA and the independent cost of capital (CCPP), return on investments (ROIC), profit before interest and taxes (BAIT), operating profit after taxes (NOPAT) and financial profitability (ROE). The control variables are margin, leverage, asset turnover and capital. EVA depends on CCPP, NOPAT and BAIT, but not on ROIC and ROE. Sector J companies have on average destroyed economic value in the study period and the cost of debt (CCPP) is very close to the return on investments (ROIC).