Estimating accounting operating performance in business sectors in Ecuador: adaptation of the CAPM Model
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Abstract
in countries with economies characterized by underdeveloped financial markets and limited availability of stock market information,
the traditional CAPM model presents limitations in its application, making it difficult to value companies in this environment. The objective of
this research was to estimate the expected accounting operating performance for different Ecuadorian business sectors, using an adaptation of
the CAPM model based on accounting data, specifically the operating return on equity (OROE). To this end, a series of historical data taken from
the Superintendency of Companies, Securities and Insurance database for the period 2013-2023 was analyzed. The sample consisted of 374,340
observations. Estimates were made using the Ordinary Least Squares (OLS) method, obtaining the following results for the Required Accounting
Return values, locating the minimum value of 9.69% in the Transportation and Storage sector, compared to the Arts, Entertainment and Recreation
sector, which presented the maximum value of 15.16%. The work concluded that, in the case of Ecuador, the use of accounting data and accounting
Beta emerge as an alternative to traditional models. This generates a more precise way to analyze the balance between risk and return in the
financial decisions of unlisted companies, providing a replicable methodology in economies with similar contexts.
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