Determinantes para la Continuidad de las Empresas Grandes de Ecuador

The prediction of the continuity of the companies is treated by different types of methodologies, however, the Altman model is the one that best adapts to emerging countries such as Ecuador. In this investigation, liquidity, the ratio between Income Tax and total assets, the size of the companies and the hiring of a BIG4 are established as causality. The purpose of the research is to establish the probability of bankruptcy of large companies in Ecuador. Through the multinomial logit model, the different probabilities found in the model known as Z score are established. This model is established because it helps determine the probability that companies have according to the ranges established by this indicator. The results obtained show the significance of the independent variables in large companies in Ecuador as determinants for the continuity of the entities. It is concluded in the present investigation that the financing policies adopted by the entities have a significant influence on the probability of bankruptcy.