The debt and its impact on the profitability of Pyramids in Boyacá, (Colombia)
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Published:
Sep 13, 2018
Keywords:
SME, debt, profitability, debt cost, financial risk, financial ratios
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Abstract
This article seeks to analyze the incidence of debt on the profitability of pyramids in the department of Boyacá, Colombia, for which, several hypotheses have been raised taking as elements: the size of the company, the asset or fixed asset, the cost of capital, and sales, aspects that are proven through financial ratios and theoretically contrasted with the contributions of Modigliani and Miller, the theory of trade off or static equilibrium, the theory of Myers and Majluf, among others. Among the main results found in the investigation, it could be established that the levels of debt assumed by the organizations are related to the size of the company, profitability, cost of capital, fixed assets and constitute a low patrimonial risk. It also establishes that the typology of small businesses in the region is associated with financing problems, which are inherent to active or reactive pyramids, that is, small organizations with low levels of profitability that survive with short-term decisions.
Article Details
How to Cite
Manrique-Joya, G. M., & Salazar-Otálora, G. E. (2018). The debt and its impact on the profitability of Pyramids in Boyacá, (Colombia). In Vestigium Ire, 11(2), 154-165. Retrieved from http://revistas.ustatunja.edu.co/index.php/ivestigium/article/view/1556
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Artículos Núm. 11-2
Investigium Ire of http://revistas.ustatunja.edu.co/index.php/ivestigium is licensed under a Creative Commons Attribution-NonComecial-NoDerivatives 4.0 International (CC BY-NCND 4.0)
References
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Graham, J., y Campbell, R. (2001). The Theory and Practice of Corporate Finance: evidence from the field (Vol. 30). Holanda: Journal of Financial Economics. doi:10.1016/S0304-405X(01)00044-7
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Michaelas, N., Chittenden, F., y Poutziouris, P. (1999). Financial Policy and Capital Structure Choice in U.K. SMEs: Empirical Evidence from Company Panel Data. Small Business Economics, 2, 113.
Miller, M. H. (1977). “Debt and taxes”. Journal of Finance, 32.
Modagliani, F., y Miller, M. (1963). Corporate income taxes and the cost of capital: a correction . The American Economic Review.
Modigliani, F., y Miller, M. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48, 261-297.
Myers , S., y Majluf, N. (1984). “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have.” J. Journal of Financial Economics. doi:10.3386 / w1393
Myers, S. C. (2001). Capital Structure Perspectives (Vol. 15). Estados Unidos: The Journal of Economic. Sena. (2013). Gedstión Financiera para el Crecimiento Económico. Bogotá: Dinero.
Taggart JR., R. A. (1977). A Model of Corporate Financing Decisions (Vol. 32). Estados Unidos.: The Journal of Finance.
Tenjo, F. M. (2007). Borradores de economía No. 438. Banco de la República.
Ang, J. S. (1991). Small Business Uniqueness and the Theory of Financial Management. The journal of Small Business Finance, 1, 1-13.
Aragón Sánchez, A. (2006). Factores explicativos del éxito competitivo: El caso de las Pymes del estado de Veracruz,. Red de Contaduría y Adminsitración, 37.
Berger, A., y Udell, G. (1998). The economics of small business ï¬nance: the roles of private equity nd debt markets in the financial growth cycle. Journal of Banking and Finance, 613-622.
Bradley, M., Gregg, A., Jarrell, a., y Han, K. (1984). On the Existence of an Optimal Capital Structure: Theory and evidence. Estados Unidos: The Journal of Finance. Obtenido de http://www.jstor.org/stable/2327950
Fama, E., y Kenneeth, F. (2002). Testing Trade-Off and Pecking Order Predictions about Dividends and Debt. (Vol. 15). Estado Unidos: The Review of Financial Studies. Obtenido de https://www.jstor.org/stable/2696797?seq=1#page_scan_tab_contents
Fenandez Trujillo, M., Cazorla Papis, L., y López Godoy, M. (2012). Problemática Financiera de las Pequeñas y Medianas Empresas venezolanas. Análisis de los Factores Internos. Unirioja, 17-25.
Graham, J., y Campbell, R. (2001). The Theory and Practice of Corporate Finance: evidence from the field (Vol. 30). Holanda: Journal of Financial Economics. doi:10.1016/S0304-405X(01)00044-7
Hall, G. C., y Michaelas, P. J. (2000). Determinants of the Capital Structures of Europeans SMEs (Vol. 31). Reino Unido: Journals od Business Finance & Accounting.
Harris, M. y. (1991). The Theory of Capital Structure (Vol. 46). Estados Unidos: The Journal of Finance.
Marsh, P. (1982). The choice between equity and debt: An empirical study. Estados Unidos: Journal of Finance.
Meckling, W. (1976). “Values and the Choice of the Model of the Individual in the Social ng, William H. Schweizerische Zeitschrift fur Volkswirtschaft.
Mejía Amaya, A. F. (2014). La estructura de capital en las medianas empresas del departamento de Boyacá, Colombia. Apuntes del Cenes.
Michaelas, N., Chittenden, F., y Poutziouris, P. (1999). Financial Policy and Capital Structure Choice in U.K. SMEs: Empirical Evidence from Company Panel Data. Small Business Economics, 2, 113.
Miller, M. H. (1977). “Debt and taxes”. Journal of Finance, 32.
Modagliani, F., y Miller, M. (1963). Corporate income taxes and the cost of capital: a correction . The American Economic Review.
Modigliani, F., y Miller, M. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48, 261-297.
Myers , S., y Majluf, N. (1984). “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have.” J. Journal of Financial Economics. doi:10.3386 / w1393
Myers, S. C. (2001). Capital Structure Perspectives (Vol. 15). Estados Unidos: The Journal of Economic. Sena. (2013). Gedstión Financiera para el Crecimiento Económico. Bogotá: Dinero.
Taggart JR., R. A. (1977). A Model of Corporate Financing Decisions (Vol. 32). Estados Unidos.: The Journal of Finance.
Tenjo, F. M. (2007). Borradores de economía No. 438. Banco de la República.