IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/11541.html
   My bibliography  Save this article

Profit margins, financing and investment in the Peruvian business sector (1998-2008)

Author

Listed:
  • Alarco Tosoni, Germán

Abstract

This paper develops a model and explains the determinants of profitmargins in the Peruvian business sector in the 1998-2008 period. Theseare established in a fixed-price scenario, with reference to a set of variablessuch as the price elasticity of demand, the behaviour of possible industryentrants and any regulatory intervention by government. In addition,there is a direct relationship between profit margins and self-financingof investment. Profit margins and profit ratios in the business sector arerising and exceed international norms. The paper also identifies a trendtowards lower levels of debt and leverage. It does not reject the hypothesisof linkage between profit margins and investment at the aggregate andsectoral level. The output-to-capital ratio or sales-to-assets ratio is directlylinked to profit margins. Most investment is self-financed.

Suggested Citation

  • Alarco Tosoni, Germán, 2011. "Profit margins, financing and investment in the Peruvian business sector (1998-2008)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
  • Handle: RePEc:ecr:col070:11541
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/11541
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Urzúa, Carlos M., 2009. "Efectos sobre el bienestar social de las empresas con poder de mercado en México," Finanzas Públicas, Centro de Estudios de las Finanzas Públicas, H. Cámara de Diputados, vol. 1(1), pages 79-118.
    2. Alarco Tosoni, Germán & Del Hierro, Patricia, 2010. "Growth and concentration among the leading business groups in Mexico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alex Coad & Gregory Scott, 2018. "High-growth firms in Peru," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 671-696, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:11541. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.