Abstract

CAIZA-PASTUNA, Erika Cristina; VALENCIA-NUNEZ, Edison Roberto  and  BEDOYA-JARA, Mayra Patricia. Investment Decisions and Profitability under the Financial Valuation in the Large Industrial Companies of the Cotopaxi province, Ecuador. rev.univ.empresa [online]. 2020, vol.22, n.39, pp.201-229.  Epub Apr 20, 2021. ISSN 0124-4639.  https://doi.org/10.12804/revistas.urosario.edu.co/empresa/a.8099.

Currently, there is no study focused on investment decisions and profitability under the valuation model of capital assets of the largest industrial companies in the province of Cotopaxi. In this regard, the present study has identified three fundamental objectives: evaluate long-term investment decisions through financial valuation, measure profitability levels through the application of the capital asset valuation model, and relate profitability and its effect on investment decisions through statistical techniques. Based on a sample of five companies, the largest in the province of Cotopaxi, and through the application of the capital asset valuation model (CAPM), the hypotheses were analyzed. The direct relationship of profitability and its effect on investment decisions was confirmed through the Wilcoxon statistician, it is established that the return on equity, sales, and financial profitability showed a tendency to grow as of 2016, product of the correct financial management in inventories, suppliers, and the credit portfolio, this condition makes the industrial sector attractive to invest.

Keywords : investment decisions; profitability; financial valuation.

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