A study of the economic and financial analysis for social firms: are they really businesses?

The main objective of this research paper is to analyze the economic and financial situation of social enterprises through ratio analysis and show their strengths and weaknesses based on financial data. The sample consists of 118 social companies operating in the Autonomous Community of Madrid in Sp...

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Detalhes bibliográficos
Autores: Gelashvili, Vera, Camacho Miñano, Juana María Del Mar, Segovia Vargas, María Jesús
Tipo de documento: artigo
Data de publicação:2020
País:España
Recursos:Universidad Complutense de Madrid (UCM)
Repositório:Docta Complutense
Idioma:inglês
OAI Identifier:oai:docta.ucm.es:20.500.14352/8638
Acesso em linha:https://hdl.handle.net/20.500.14352/8638
Access Level:Acceso aberto
Palavra-chave:J58
M4
M41
Social enterprises
Insertion firms
Sheltered employment centres
Financial and economic analysis
Empresas sociales
Empresas de inserción
Centros especiales de empleo
Análisis económico-financiero
Contabilidad (Economía)
Trabajo
Cooperativas
5303 Contabilidad Económica
Descrição
Resumo:The main objective of this research paper is to analyze the economic and financial situation of social enterprises through ratio analysis and show their strengths and weaknesses based on financial data. The sample consists of 118 social companies operating in the Autonomous Community of Madrid in Spain. For data analysis, economic and financial analysis has been carried out, using ratio analysis and the indicator of financial distress: the Altman Z’-score. Our findings highlight that social companies are businesses with a high level of profitability, especially for their partners. Thus, their survival, on average, is guaranteed in the long-term and their liquidity level is optimum. This study is an important contribution for the academic literature, because it carries out a comparison amongst the two different types of social firms, focusing on their economic and financial structure, diminishing the lack of empirical studies about these companies.