Impact of the Tax Reform on financial efficiency in agricultural SMEs in the Province of Los Ríos-Ecuador
Abstract
The aim of this study was to evaluate the impact on the financial efficiency of SMEs in the agricultural sector of Ecuador, after the application of the organic law for the reactivation of the economy enacted in December 2017. The data envelopment analysis was applied to the agricultural SMEs of the Province of Los Ríos that presented income during the years 2017, 2018 and 2019. The inputs of the model were: sales revenue, income tax, operating costs and expenses and the outputs were: net margin and earnings before taxes. Small companies decreased their efficiency for the year 2018 with a recovery in 2019. Medium companies increased their efficiency for the year 2018 and decreased in 2019. Due to the variation in inputs and outputs observed, it cannot be concluded that this decrease in efficiency is solely due to the impact of the new law.
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