Despite changes in corporate law and the introduction of the code, ownership of Mexican public firms is still heavily concentrated and this presents incentives that harm the three principals of good governance: transparency, balance of power, and accountability. Having said this, we also need to acknowledge the increasing importance of private equity and institutional investment among the newer public firms. The presence of this type of block holders should improve the quality of governance due to an increase in accountability and power balance. The caveat here is that the number of firms that go public in Mexico is low even for emerging markets; according to Rivas and Adamuz (2017), in a study using 63 ...
Get A Primer on Corporate Governance now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
