Liquidity and profitability of companies listed on the Lima Stock Exchange in the context of the Covid19 pandemic
Keywords:
Liquidity, Profitability, Pandemic, COVID, Stock market.Abstract
The research objective was to determine the relationship between the liquidity and profitability variables of the companies listed on the Lima Stock Exchange during the years 2020 and 2021, to demonstrate the prevalence of the problems of said variables in the various sectors as an effect of the covid 19 pandemic. The research was carried out with the deductive process, with a retrospective cross-sectional non-experimental design, applying a documentary analysis sheet to collect the required data from the audited financial statements of the companies under study. The results revealed that a high percentage (more than 30%) of the companies studied either had liquidity less than 1 or greater than 2 and negative profitability. It was demonstrated that the liquidity problem is directly and significantly related to the profitability problem in the evaluated ratios.References
Aguirre, C., Barona, C., & Dávila, G. (2020). La rentabilidad como herramienta para la toma de decisiones: análisis empírico en una empresa industrial. Revista Valor Contable, 7(1), 50-64. https://revistas.upeu.edu.pe/index.php/ri_vc/article/download/1396/1750
Ahmand, R. (2016). A Study of Relationship between Liquidity and Profitability of Standard Charterd Bank Pakistan: Analysis of Financial Statement Approach. Global Journal of Management and Business Research, 16(1), 76-82. https://globaljournals.org/GJMBR_Volume16/7-A-Study-of-Relationship.pdf
Airout, R., Alawaqleh, Q., Almasria, N., Alduais, F., & Alawaqleh. (2022). The Moderating Role of Liquidity in the Relationship between the Expenditures and Financial Performance of SMEs: Evidence from Jordan. Economies, 11(4). https://www.mdpi.com/2227-7099/11/4/121#B5-economies-11-00121
Akinleye, G. T., & Ogunleye, J. S. (2019). Liquidity and The Profitability of Manufacturing Firms in Nigeria. Applied Finance and Accounting, 5(2), 68–73. https://doi.org/10.11114/afa.v5i2.4477
Almeida, H. (2020). Liquidity Management During the Covid-19 Pandemic. Asia-Pacific Journal of Financial Studies, 50(1), 1-18. https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajfs.12322
Al-Qadi, N., & Khanji, I. (2018). Relationship Between Liquidity and Profitability. Research Journal of Finance and Accounting, 9(7), 152-157. https://www.researchgate.net/publication/324877754_Relationship_Between_Liquidity_and_Profitability_An_Empirical_Study_of_Trade_Service_Sector_in_Jordan
Apergis, N., Lau, C.K, Xu, B. (2023). The impact of COVID-19 on stock market liquidity: Fresh evidence on listed Chinese firms. International Review of Financial Analysis,90. https://doi.org/10.1016/j.irfa.2023.102847
Arévalo, G., Zambrano, S., & Vásquez, A. (2022). Teoría del Pecking Order para el análisis de la estructura de capital: aplicación en tres sectores de la economía colombiana. Revista Finanzas y Politica Económica, 14(1). https://revfinypolecon.ucatolica.edu.co/article/view/4295/4219
Chaudhary, A., & Raja, S. (2021). An In-depth Analysis of the Relationship between Liquidity and Profitability, Vis-à-vis, Tata Pigment Limited. European Journal of Business and Management Research, 6(3), 151-154. https://www.ejbmr.org/index.php/ejbmr/article/download/881/484/2989
Chilón, W. (2020). Factores de riesgo y su incidencia en la rentabilidad de micro y pequeñas empresas de Chota, Perú. Ciencia y Tecnología, 16(2), 183-192. https://revistas.unitru.edu.pe/index.php/PGM/article/view/2900
Claeys, G., Papioti, C., Tryphonides, A. (2023). Liquidity risk, market power and the informational effects of policy. Journal of International Economics,142. https://doi.org/10.1016/j.jinteco.2023.103732
Comisión Económica para América Latina y el Caribe (CEPAL). (2020). Sectores y empresas frente al COVID-19: emergencia y reactivación. Informe Especial COVID-19 No 4: las empresas frente a la COVID-19.
Contreras, N. (2015). Estructura financiera y rentabilidad: origen, teorías y definiciones. Revista de Investigación Valor Contable, 2(1). https://revistas.upeu.edu.pe/index.php/ri_vc/article/view/824
Cueva, Y., Martínez, L., & Oblitas, R. (2021). Control interno y la rentabilidad de la empresa Albis Perú E.I.R.L. de Jaén-2020. iencia Latina. Revista Científica Multidisciplinar, 5(6), 1-20. https://ciencialatina.org/index.php/cienciala/article/view/1093/1491
Culham, J. (2019). Revisiting the concept of liquidity in liquidity preference. Cambridge Journal Of Economics, 1, 1-15. https://academic.oup.com/cje/article-abstract/44/3/491/5648974
Díaz, M. (2012). Inmovilizado: El punto de partida de la liquidez. Revista Universo Contábil, 8(2), 134-145. https://www.redalyc.org/pdf/1170/117023653008.pdf
Espinoza, R. (2021). Influencia de la liquidez en las microempresas de Huancayo en épocas de COVID-19. Visionarios en ciencia y tecnología, 6, 71-81. https://revistas.uroosevelt.edu.pe/index.php/VISCT/article/download/92/148
Gofran, R., Gregoriou, A., & Haar, L. (2022). Impact of Coronavirus on liquidity in financial markets. Journal of International Financial Markets, Institutions and Money (78). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9013696/
Guitérrez, J., & Tapia, J. (2020). Liquidez y rentabilidad. Una revisión conceptual y sus dimensiones. Revista De Investigación Valor Contable, 3(1), 9-30. https://revistas.upeu.edu.pe/index.php/ri_vc/article/view/1229
Hengje, A., Murray, F., & Ali, S. (2021). The Trade-Off Theory of Corporate Capital Structure. Economics and finance, 1(1). https://oxfordre.com/economics/display/10.1093/acrefore/9780190625979.001.0001/acrefore-9780190625979-e-602;jsessionid=1A4290A3B23883B01CAAA7074CDFE9C6
Hernández, R., Fernández, C., & Baptista, P. (2018). Metodología de la Investigación. Mc Graw Hill.
Hossain, I., & Alam, J. (2019). The Relationship between Liquidity and Profitability in Emerging Countries: Evidence from Bangladesh. Journal of Finance and Accounting, 7(1), 22–27. https://doi.org/10.12691/jfa-7-1-4
Ibrahim, S. S. (2017). The Impacts of Liquidity on Profitability in Banking Sectors of Iraq: A Case of Iraqi Commercial Banks. International Journal of Finance & Banking Studies, 6(1), 113–121. https://doi.org/10.20525/ijfbs.v6i1.650
Jaworski, J., y Czerwonka, L. (2021). Meta-study on the relationship between profitability and liquidity of enterprises in macroeconomic and institutional environment. Decision, 48(2), 233–246. https://doi.org/10.1007/s40622-021-00280-y
Kajola S., Sanyaolu, W., Alao, A. & Ojunrongbe O. (2019). Liquidity and profitability: Evidence from the Nigerian Banking Sector. Accounting and Taxation Review, 3(2): 1-12.
Khati, P. (2020). Impact of liquidity on profitability in Nepalese Commercial Bank. Journal of Economics and Finance, 11(5), 26–33. https://doi.org/10.3126/pragya.v5i1.30458
Laura, R. & Phala, N. (2021). Liquidez y rentabilidad en un colegio privado. Revista hechos contables. Revista de Investigación en Contabilidad, 1(2), pp. 115-124 Junio-Diciembre 2021. ISSN: 2810-838. https://educas.com.pe/index.php/hechoscontables/article/view/79/320
Madushanka, K. & Jathurika, M. (2018). “The Impact of Liquidity Ratios on Profitability (With special reference to Listed Manufacturing Companies in Sri Lanka),” International Research Journal of Advanced Engineering and Science, 3 (4), pp. 157-161, 2018.
Martín, V. (2020). La preferencia por la liquidez y el fracaso de los estímulos monetarios. Centro de Estudios Economía de Madrid (2), 1-5. https://www.urjc.es/images/ceem/Documento%202_CEEM.pdf
Medina, M., Quilindo, M., Fernández, S., & Martínez, L. (2021). La baja rentabilidad genera consecuencias que pueden conllevar a la deserción empresarial. In S. Fernández, & L. Beltrán, Cultura tributaria: relevancia ante rentabilidad empresarial (pp. 155-184). Editorial Universidad Santiago de Cali. https://libros.usc.edu.co/index.php/usc/catalog/download/209/212/3756?inline=1
Mohanti, B., Mehrotra, S. (2018). Relationship between Liquidity and Profitability: An Exploratory Study of SMEs in India. Emerging Economy Studies, 4(2), 169–181. https://doi.org/10.1177/2394901518795069
Mori, G., Gardi, V., & Moreno, R. (2021). Análisis de la liquidez en una empresa de transporte de carga terrestre. Oikos Polis, 6(2), 3-29. http://www.scielo.org.bo/scielo.php?script=sci_arttext&pid=S2415-22502021000200003
Nava, M. (2010). Análisis financiero: una herramienta clave para una gestión financiera eficiente. Revista Venezolana de Gerencia, 14(48), 606-628. https://www.redalyc.org/pdf/290/29012059009.pdf
Nishihara, M., & Shibata, T. (2021). The effects of asset liquidity on dynamic sell-out and bankruptcy decisions. European Journal of Operational Research, 28(3), 1017-1035. https://www.sciencedirect.com/science/article/pii/S0377221720305749
Novelo, F. (2016). La pertinencia actual de la Teoría General de Keynes. Economíaunam, 13(38), 41-60. https://www.redalyc.org/pdf/3635/363545558002.pdf
Panigrahi, A. (2019). Liquidity and Profitability Relationship and Financial Fallacy. Think India Journal, 22(10). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3488935
Panigrahi, A. K., Raul, N., y Gijare, C. (2018). Liquidity and Profitability Trade-off: A Study of Indian Pharmaceutical Companies. NMIMS Journal of Economics and Public Policy, 3(1), 42–56. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=32020-202198
Parrales, E. & Ramírez, K. (2022). Efecto de la pandemia y su incidencia en la liquidez y solvencia económico financiera en la Empresa Ferretería S.A. [Tesis de pregrado, Universidad Laica Vicente Rocafuerte]. http://repositorio.ulvr.edu.ec/handle/44000/5555
Posada, C. (2014). El dinero y la liquidez. Ensayos sobre Política Económica, 32(74), 36-51. http://www.scielo.org.co/scielo.php?pid=S0120-44832014000200004&script=sci_arttext
Puican, V. (2021). Análisis del impacto del Covid - 19 en las ventas de una empresa de autopartes de la provincia de Jaén, Perú. Ciencia Latina Revista Científica Multidisciplinar, 5(6). https://doi.org/10.37811/cl_rcm.v5i6.1100p10592
Quiroz, D., Barrios, R., & Villafuerte, A. (2010). Gestión de cuentas por cobrar y liquidez en la Asociación Educativa Adventista Nor Oriental, 2020. Balance's, 7(10), 48-56. https://revistas.unas.edu.pe/index.php/Balances/article/view/183
Ramírez, S., & Maldonado, I. (2020). Influencia de la liquidez en la rentabilidad financiera: Caso de la Compañía Goodyear S.A. Revista Valor Contable, 7(1), 65-78. https://revistas.upeu.edu.pe/index.php/ri_vc/article/view/1397/1752
Ramírez, V., Vicente, E., Héctor, M., Fabían, L., & Bustamante, Y. (2019). Teorías sobre estructura de capital y rentabilidad en las compañías. Gestión en el Tercer Milenio, 22(44), 25-34. https://revistasinvestigacion.unmsm.edu.pe/index.php/administrativas/article/download/17306/14565/60332
Ramos, J. (2021). Factores determinantes del desempeño empresarial en Lima Metropolitana durante la pandemia del COVID-19. Quipukamayoc, 29(61), 95-104. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S1609-81962021000300095
Reschiwati, R., Syahdina, A., & Handayani, S. (2020). Effect of Liquidity, Profitability, and Size of Companies on Firm Value. Utopía y Praxis Latinoamericana, 25, 325-332. https://www.redalyc.org/journal/279/27964115031/html/
Rísquez, J. (2006). Keynes: la teoría cuantitativa y la no neutralidad del dinero. Revista de Ciencias Sociales, 7(2), 308-318. https://ve.scielo.org/scielo.php?script=sci_arttext&pid=S1315-95182006000200009
Roca, A., Montesinos, E. & Dávila, G. (2020). Estrategias financieras sostenibles aplicadas ante situaciones de riesgo empresarial: un análisis bibliográfico. Revista Valor Contable, 7(1), (79-90). https://revistas.upeu.edu.pe/index.php/ri_vc/article/view/1398/1754
Smolje, A. (2020). Gestión y costos en la era del Covid-19. Costos y Gestión - Año XXX - N.º 99 - Septiembre 2020 ISSN 2545-8329 (en línea). https://iapuco.org.ar/ojs/index.php/costos-y-gestion/article/view/271/125
Svitlík, J., & Poutník, L. (2016). Relationship between Liquidity and Profitability: Empirical Study from the Czech Republic. European Financial and Accounting Journal, 11(3), 7–24. https://doi.org/10.18267/j.efaj.159
Syed, Q., Zhigiang, M., Mohsin, R., Mingxing, L., Safwan, Q., Chengang, Y., & Haoyang, X. (2022). COVID-19 and financial performance: Pre and post effect of COVID-19 on organization performance; A study based on South Asian economy. Front Public Health, 10. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9871922/
Velarde, T. (2018). El análisis financiero de liquidez y su relación con la rentabilidad en la Empresa de Transportes y Servicios el Kazmeño E.I.R.L., Huachipa, 2015-2017. [Tesis de licenciatura, Universidad César Vallejo]. https://hdl.handle.net/20.500.12692/35007
Zambrano, S., & Acuña, G. (2013). Teoría del Pecking Order versus teoría del Trade off para la empresa Coservicios S.A. E.S.P. Apuntes del Cenes, 32(56), 205-236. http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0120-30532013000200009
Zambrano-Farías, F. (2021). Factores explicativos de la rentabilidad de las microempresas: Un estudio aplicado al sector comercio. INNOVA, 6(3), 63-78. https://dialnet.unirioja.es/descarga/articulo/8226524.pdf
Zareen, R., Gregoriou, A., Haar, L. (2022). Impact of Coronavirus on liquidity in financial Markets. Journal of International Financial Markets, Institutions and Money,78. https://doi.org/10.1016/j.intfin.2022.101561
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 José Luis Chirinos Mendoza
The works published in this magazine are under the Creative Commons Attribution-NonCommercial 2.5 Argentina license.
Important: The author is the owner of the rights to exploit the contents of the article of his authorship.
You are free to:
Share — copy and redistribute the material in any medium or format.
Adapt — remix, transform and build from the material.
The licensor cannot revoke these liberties as long as you follow the terms of the license.
Under the following terms:
Attribution - You must give appropriate credit, provide a link to the license, and indicate if any changes have been made. You may do so in any reasonable way, but not in a way that suggests that you or your use is endorsed by the licensor.
Non-Commercial - You may not use the material for commercial purposes.
There are no additional restrictions - You cannot apply legal terms or technological measures that legally restrict others to make any use permitted by the license.
