El gobierno corporativo y el comportamiento financiero del sector de seguros generales del Ecuador

Abstract

The general purpose of this research is to analyze the financial behavior of general insurance companies and the ownership structure of their corporate governance during the period from 2017 to 2022 in Ecuador. Specifically, three objectives are considered: to describe the financial behavior of the companies, to examine the structure of their corporate governance, and to quantify the effect of the latter variable on financial performance. The Altman Z-Score number 2 index, which is applicable to companies in other industries, was estimated and described using descriptive statistics and box-andwhisker plots, along with the indicators that comprise the index. Similarly, the pseudo Herfindahl-Hirschman Index (HHI) of the subscribed capital of the shareholders of each company was estimated. This required calculating the capital shares of each shareholder, subsequently approximating their squared values as a preliminary step for the calculation of the index. Finally, a panel data regression analysis with a Two-Way Fixed Effects (TWFE) structure was conducted. The research determined that the financial performance is adequate, with an Altman Z-Score index of 3.45 points, which falls within the low-risk zone. However, the trend of the indicator is contracting, suggesting a deterioration in the financial health of the companies. Additionally, significant concentration was observed in the ownership structure of corporate governance. Lastly, a negative and significant impact of the ownership structure of corporate governance on the financial behavior of the companies was evidenced, indicating that greater concentration in ownership leads to a decrease in the aforementioned index.