NATURAL DISASTER RISKS AND THEIR FINANCIAL IMPACT: CASE STUDY OF THE REAL ESTATE SECTOR IN THE PROVINCE OF COTOPAXI

Abstract

The objective of the research was to analyze the financial impact of the real estate sector in the province of Cotopaxi in light of the risks of natural disasters in the area. The methodology was based on a quantitative approach according to the data obtained from a survey directed to 43 managers of the organizations in the area registered with the Superintendency of Companies at the end of 2019. As the main result, it was shown that the main social and economic effects affected to companies and migrated to other regions of the country. It is concluded that, after having received the impact of the volcanic reactivation, the companies have not been able to recover from the economic losses, decrease in their profits, and increase in debt with the Internal Revenue Service. This has been a direct consequence of the inadequate organizational preparation planned to face the occurrence of a natural disaster.

Keywords: natural disasters, financial impact, real estate sector.

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