Abstract

PADILLA-OSPINA, Ana Milena  and  RIVERA-GODOY, Jorge Alberto. Automotive Industry in Colombia: an Engine that Generates Added Economic Value?. Cuad. Contab. [online]. 2016, vol.17, n.44, pp.317-348. ISSN 0123-1472.  https://doi.org/10.11144/Javeriana.cc17-44.iacm.

The purpose of this article is to assess the financial performance of the Colombian automotive sector during the 2008-2014 period by studying its efficiency, efficacy, effectiveness, and economic value added, using a methodology relying on the analysis of financial indicators based on accounting data, and those related to the management of economic value added. This sector generates accounting returns in each of the years analyzed, and the performance of its effectiveness -in order of importance-depends on efficacy, financial leverage, and efficiency. Still, in only one year it creates economic value added (EVA) and its market value added (MVA) is negative. The performance of the EVA has a closer relationship to the orientation of the profitability indicator of net operating assets than to the weighted average cost of capital. The first depends on the efficacy of the control exerted over costs and expenses, and the efficiency of the use of net operating assets. Although this study shows the factors that have influenced the performance of the Colombian automotive industry, these results could be reinforced if similar studies could be done for more homogeneous groups of companies classified by age, size, and geographical location.

Keywords : Economic Value Added (EVA); Market Value Added (MVA); financial performance; financial analysis; financial indicators of efficiency; effectiveness, and efficacy; EVA induces; automotive industry.

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