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

Maria Belen Pinduisaca Peralta, Jorge Luis Garcia Bacuilima and Diana Catalina Arce Bau

Revista Global de Negocios, 2020, vol. 8, issue 2, 11-22

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.

Keywords: Accountant; Budgeting; Depreciation (search for similar items in EconPapers)
JEL-codes: L70 M41 N6 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:rgnego:v:8:y:2020:i:2:p:11-22

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