Fiscal incentive, liquidity and solvency of the companies of ecuador

Abstract

The purpose of this investigation was to determine the impact of the liquidity and solvency incentive in Ecuadorian companies, taking into account Decree 210 of the Rebate of the balance of the income tax advance. The research was descriptive and considered as a study period between 2015-2016 before and 2017-2018 after the issuance of the decree. For the year 2017, according to the Superintendence of Companies, Securities and Insurance, there were 66,854 companies, so a balanced panel was made with 14,210 data per year, organizing by income under 3 segments. The selected variables were: withholdings made and the liquidity and solvency indices. The detailed results for the year 2017 that 34,771 companies benefit from the tax incentive for an amount determined to 400 million dollars; Segment 3 being the most economically benefited, companies are solvent and the reduction represents 40%, followed by Segment 1 with a 100% reduction in the balance of the third installment, but companies suffer an increase in indebtedness. It is concluded that the companies that benefit from the decree increased their liquidity while the indebtedness is inverse to size.