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Variation of profitability according to sources of financing

Abstract:

The main objective of this quantitative - relational work is to analyze the variation of the profitability according to the sources of financing of the Medium - sized Enterprises of Ecuador (MESE). In order to carry out this study, financial information of 168 companies of the province of Loja, obtained from the database of the Superintendence of Companies of Ecuador, is taken into account. As a period of study, the years 2011 to 2014 were considered. The study variables were financial indicators such as profitability - dependent variables - represented by ROA (economic profitability) and ROE (financial profitability); and as independent variables: liquidity, solvency, leverage, and size of the MESE as a function of the volume of assets. The methodology used for the analysis of information was a correlation of variables to determine their associativity, using panel data. With the main results of this research, it s concluded that the MESE presents low correlations between the independent variables with respect to the dependent variables. Thus, it can be mentioned that the correspondence between the generation of profits and the increase in debt is low.