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Construction Sector Financial Statements In Ecuador: Impact Of The Consolidation And Distribution Of Expenses In Micro-Enterprises Estados Financieros Sector Construccion En Ecuador: Impacto De La Consolidacion Y Distribucion De Gastos En Microempresas

Author

Listed:
  • Maria Belen Pinduisaca Peralta
  • Jorge Luis Garcia Bacuilima
  • Diana Catalina Arce Bau

Abstract

Expenses are an important item in financial statements, and the sustainability of a company depends on its proper control. This paper analyses the financial statements for a set of Ecuadorian Constructions micro enterprise, as determined by CIUU classification. The sample was randomly taken with a confidence of 95%, Z=1.96 and 5% error, from a universe of 362 companies located in three main provinces: Pichincha, Guayas and Azuay. Results provide evidence of poor consolidation and distribution of expenditures, and apparently no reviewing process of the items in the reported financial statements. In some of the Guayas's cases analyzed, information was incomplete, which suggests a lack of control from the competent authority. This situation could encourage the proliferation of phantom companies.

Suggested Citation

  • Maria Belen Pinduisaca Peralta & Jorge Luis Garcia Bacuilima & Diana Catalina Arce Bau, 2020. "Construction Sector Financial Statements In Ecuador: Impact Of The Consolidation And Distribution Of Expenses In Micro-Enterprises Estados Financieros Sector Construccion En Ecuador: Impacto De La Con," Revista Global de Negocios, The Institute for Business and Finance Research, vol. 8(2), pages 11-22.
    • Handle: RePEc:ibf:rgnego:v:8:y:2020:i:2:p:11-22
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    More about this item

    Keywords

    Accountant; Budgeting; Depreciation;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • N6 - Economic History - - Manufacturing and Construction
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General

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