La Rentabilidad de las Grandes Compañías como Determinantes en la Elección de las Big 4: Caso Ecuatoriano 2012-2017

Translated title of the contribution: The Profitability of Large Companies as Determinants in the Election of the Big 4: Ecuadorian Case 2012-2017

Maria Alexandra Chavez Pullas, Maria Alejandra Zuñiga Alvarado, Miguel Paul Herrera Estrella, Ginger Aracelly Zambrano Pionce

Research output: Contribution to journalArticle

Abstract

The research is aimed at establishing the probability that large Ecuadorian companies hire an auditing firm considered in the financial world as BIG4. The dependent variable analyzed is a binary variable that through a logit model is intended to quantify the probability. The research is circumscribed within the neopositivist paradigm as defined by Kuhn. Therefore, the quantification of the regressor or independent variables are the profitability of large companies in Ecuador in the periods between 2012 and 2017. In the present research, the logit model is used to establish the probability of hiring a BIG 4 by an entity through profitability indexes. As a result of the research, it was found that the profitability of the entities has a significant impact on the contracting of a BIG 4. Thus, it was concluded that companies with robust profitability have a high probability of contracting a BIG 4 and of providing financial information that is reliable and relevant for the various users.
Translated title of the contributionThe Profitability of Large Companies as Determinants in the Election of the Big 4: Ecuadorian Case 2012-2017
Original languageSpanish (Ecuador)
Pages (from-to)80-96
Number of pages17
JournalYachana Revista Científica
Volume8
Issue number8
DOIs
StatePublished - 1 Oct 2019

Keywords

  • Company
  • Financial audit
  • Management audit
  • Profit

CACES Knowledge Areas

  • 314A Administration

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