593 Value, Profitability, and Risk of Savings and Credit Cooperatives in Ecuador
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Abstract
The objective of this study is to analyze the relationship between value, profitability, and risk of segment 1 credit cooperatives in Ecuador during the period 2017 to 2024. The methodology employs a quantitative approach based on financial data obtained from the Superintendence of Popular and Solidarity Economy of Ecuador. Econometric models, including linear regression and collinearity analysis (VIF), were applied to measure the impact of variables such as return on investment (ROIC), weighted average cost of capital (WACC), indebtedness (END), liquidity (LIQ) and asset size (LNACT) on the creation of economic value added (EVA). The results show that ROIC is the main determinant of EVA, while CCPP and END negatively affect value generation. Liquidity has no significant impact, and asset size is positively associated with value creation. The implications of the study suggest that COACS management should prioritize strategies to maximize profitability (ROIC) based on revenue diversification and operating efficiency, reducing administrative expenses and credit risks. Optimizing the financing structure would decrease the CCPP and the negative impact on value creation (EVA).
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