Relationship between business financing and profitability in companies in the industrial sector listed on the Lima stock exchange, 2010-2014 period

Authors

  • Rullery Montenegro Solís Escuela Profesional de Contabilidad, Facultad de Ciencias Empresariales, Universidad Peruana Unión
  • Sinforiano Martínez Huisa Escuela Profesional de Contabilidad, Facultad de Ciencias Empresariales, Universidad Peruana Unión

DOI:

https://doi.org/10.17162/rivc.v4i1.1238

Keywords:

Business financing, economic profitability, financial profitability

Abstract

The objective of this research work is to determine the relationship between financing and profitability in companies of the industrial sector listed on the Lima Stock Exchange, period 2010 to 2014. The type of correlational study with retrospective non-experimental design. The study population is made up of 25 companies. The descriptive analysis determined that: 1) short-term business financing has greater representation at the middle level (43.95%), 2) long-term financing reaches higher representation at the middle level (44.1%), 3) economic profitability has higher representation at the middle level with (43.77%). 4) Likewise, financial profitability also reaches higher representation at the middle level (44.06%). A relationship was found between short-term business financing and economic profitability (p-value <0.05), as well as between long-term financing and economic profitability (p-value <0.05). In conclusion, it is determined that if there is a direct relationship between long-term business financing with financial and economic profitability, while short-term financing the relationship is negative.

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Published

2020-03-03

How to Cite

Montenegro Solís, R. ., & Martínez Huisa, S. . (2020). Relationship between business financing and profitability in companies in the industrial sector listed on the Lima stock exchange, 2010-2014 period. Revista De Investigación Valor Contable, 4(1), 29–41. https://doi.org/10.17162/rivc.v4i1.1238