Volume 20 No 13 (2022)
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Econometric analysis of the financial sustainability of Popular and Solidarity Economy organizations
Sarmiento Castillo Germania del Pilar; Hernández Ocampo Silvana Elizabeth; Peláez Moreno Lenin Ernesto; Peña Vélez Maritza Jackeline; Malla Alvarado Franklin Yovani
Abstract
The presence of unique economic events, such as the COVID-19 pandemic, tests the ability of organizations to survive and become stronger. In this context, the concept of financial sustainability becomes relevant to assess the vulnerability of organizations. This study evaluates the financial sustainability of popular and solidarity economy organizations in Ecuador, using an econometric approach. We used 479 cooperatives and 507 associations that met the necessary characteristics for the study. The econometric model was structured with the natural logarithm of the indicators of leverage, profitability, soundness and liquidity. The results reveal that financial sustainability in social and solidarity economy organizations is directly affected by the levels of indebtedness and profitability, as well as by the equity structure, which is the factor that most contributes to reducing financial vulnerability
Keywords
Social and solidarity economy, Ecuador, financial sustainability, nonprofit, financial vulnerability, financial vulnerability.
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