National tributes on the liquidity and value creation of construction companies in a Colombian city

Deisy Yajaira Villabona Blanco, Gerson Rueda Vera, Yair Rolando Casadiego Duque

Abstract


The profitability obtained in an investment, as well as the legal stability in relation to taxes is important for the organizations, for this reason, the relationship between national taxes and liquidity and economic value inductors of the construction companies in the city of Cúcuta, Colombia was determined. Methodologically, this was a quantitative, descriptive-correlational study, the population consisted of 24 companies of the construction sector, with a non-probabilistic-intentional sample of 6 companies. In order to collect the data, accounting and financial information of the economic entities was requested. The results show how tax laws and decrees during the period of validity affect liquidity, free cash flow, profitability, working capital productivity and value drivers. Therefore, it was concluded that taxes were increasing in the first three years, when relating taxes with PKT, the coefficient of determination is only 22%, and if the PDC is observed, it is found that its values in all years are very low, even in the year 2019 which is almost null, also the return on net assets (RAN) shows values that for the Colombian reality are low, in the financial field shows that the tax aspects generated a destruction of economic value of the construction companies

Keywords


Value creation, Profitability, Tax, Liquidity, Construction companies

Full Text:

PDF

References


Albornoz, C. (2006). Working capital an important issue to consider in companies. Publicaciones Universo Económico, UE Nº 78- February 2006. Buenos Aires. Available at http://www.consejo.org.ar/publicaciones/ue/ue78/trabajo.htm accessed on March 2020.

Arango, S. and Rivera, S. (2018): "Estimation of the fair value of the construction company Conconcreto S.A, Universidad EAFIT, Escuela de Administración, Maestría en Administración Financiera, Medellín.

Arias, F. (2012) The Research Process. Introduction to scientific methodology. Sixth edition (6) Editorial Episteme. Caracas. Venezuela. ISBN: 980-07-8529-9

Block, S. (2005) Financial Management. Eleventh edition. Publisher. McGraw Hill. D.F. Mexico. ISBN 9789701050903

Bonilla, E. and Rodríguez, P. (2005) Más allá del dilema de los métodos. Editorial Nomos S.A. Colombia.

Cancelado, O. and Sánchez, L. (2018): Income planning taxable period 2017 for the construction company Grupo Calle Real S.A. Universidad Agustiniana, Facultad de Ciencias Económicas y Administrativas, Especialización en planeación tributaria, Bogotá. Colombia

Caycedo, C. (2018) Rents associated with VIS and/or VIP. Plataforma digital Asuntos Legales. Editorial la Republica S.A.S. Bogotá, Colombia, at https://www.asuntoslegales.com.co/analisis/camilo-francisco-caycedo-400351/rentas-asociadas-a-la-vis-yo-vip-2748749 accessed January 2020.

Congress of the Republic of Colombia (2014) Law 1739. Whereby the Tax Statute is amended, Law 1607 of 2012, mechanisms are created to fight evasion and other provisions are enacted. Imprenta Nacional. Bogotá, Colombia.

Congress of the Republic of Colombia (2016) Law 1819. Whereby a structural tax reform is adopted, mechanisms for the fight against tax evasion and avoidance are strengthened, and other provisions are enacted. Imprenta Nacional. Bogotá, Colombia.

Cornelio, B. and Reátegui, T. (2014) Proposal of a financial plan to optimize the liquidity of the construction company Grupo Las Palmeras E.I.R.L. District of Tarapoto, period 2013. National University of San Martin. Faculty of Economic Sciences, Professional Academic School of Accounting. Tarapoto. Perú.

Delgado, L. (2014) . International Financial Management. Centro Editorial Esumer. Medellín, Colombia ISBN: 978-958-8599-78-6.

DIAN (2017) Subject: Income Tax. Descriptors Exempt income. Official notice No. 008069. Formal source: Article 207 of the Tax Statute. Bogotá, Colombia.

García, O. (2003). Company valuation, value management and EVA. Editorial Prensa Moderna Impresores S.A. Cali, Colombia. ISBN 9583344168

García, O. (2009). Financial Administration Fundamentals and Applications. Fourth (4) edition. Editorial Prensa Moderna Impresores S.A. Cali, Colombia. ISBN 9789584454430

Gitman, L.: and Zutter, Ch. (2012). Principles of Financial Management. Twelfth (12) edition. Editorial Pearson Educación. D.F. Mexico ISBN: 978-607-32-0983-0

Guardiola, L.; Rueda, G.; Avendaño, W. (2020) Footwear sector in frontier contexts: an analysis from the exchange rate and EBITDA in the return on equity. Revista espacios. Volume 41, No. 22. pp. 239-250. ISSN: 0798-1015

Hernandez, C. (2018) VAT refund or compensation for builders. National Institute of Public Accountants. Bogotá. Colombia. https://incp.org.co/devolucion-compensacion-iva-constructores/ accessed August 2020.

Hernández, S., Fernández, C. & Baptista, P. (2014). Metodología de la investigación. Sixth edition (6). Editorial Mcgraw-Hill. D.F. Mexico. ISBN 978-1-4562-2396-0

Homaid, Ibn. Tijani, I.A (2015). Financial Analysis of a Construction Company in Saudi Arabia. International Journal of Construction Engineering and Management, Volume 4 (3), p.80-86 ISSN: 2326-1080.

Martin, J., and Petty, W. (2001) Value-based management. The firm's response to the shareholder revolution. Editorial Gestión 2000. Barcelona, Spain. ISBN 8480886447

Méndez, C. (2020) Research methodology. Design and development of the research process in business sciences. Fifth edition (5). Editorial Alpha. ISBN: 9789587786606

Otzen, T. & Manterola C. (2017). Sampling techniques on a study population. International Journal Morphology, Vol. 35 No. 1 pp. 227-232. ISSN 0717-9502

Peñaloza, M. (2008) Working Capital Management. Perspectivas Magazine, Number 21, January-June. ISSN 1994-3733 Universidad Católica Boliviana San Pablo Cochabamba, Bolivia. pp. 161-172.

Presidency of the Republic (1989) Law 624. Whereby the Tax Statute of the taxes administered by the General Directorate of National Taxes is issued. National Printing Office. Bogotá Colombia.

Rivera, J. (2004) Introduction to financial administration. Editorial: Programa Editorial Universidad del Valle, Colombia. ISBN 13 9789586703420

Rueda, G. (2010) Factors affecting the financial performance of companies in the textile apparel sector in Cúcuta. Respuesta Magazine. Number 1 Year 15. pp. 13 -18. ISSN 0122-820X

Rueda, G.; Thomas, S.; Casadiego, Y. (2013) The valuation of companies applied in textile clothing MSMEs in Cúcuta. Revista Respuesta. Volume 18 Number 1. pp. 43 -49. ISSN 0122-820X

Tellez, J. (2015). An empirical analysis of the value creation of firms listed on the Mexican Stock Exchange. University of Cantabria. Doctorate in business administration and management. Santander. Spain.

Valls, M. (2001) Classical methods of business valuation. European Research Journal of Management and Business Economics Vol. 7, No. 3 pp. 49-66 ISSN 1135-2523

Van Horne, J.; Wachowicz, J. (2010) Fundamentos de Administración Financiera Thirteenth edition (13) Editorial PEARSON EDUCACIÓN. D.F. Mexico, ISBN: 978-607-442-948-0


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Journal of Language and Linguistic Studies
ISSN 1305-578X (Online)
Copyright © 2005-2022 by Journal of Language and Linguistic Studies