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Corporate Governance and Firm Value in Mexico

Listed author(s):
  • Alberto Chong

    ()

  • Florencio Lopez-de-Silanes

The objective of this paper is twofold. On one hand, we undertake an analysis of the recent evolution of capital markets and their effect on the availability of external financing in Mexico in the last two decades. On the other hand, based on a newly assembled firm-level data set on corporate governance and firm performance, we show that better firm-level corporate governance practices are linked to higher valuations, better performance and more dividends disbursed to investors. These results hold after controlling for endogeneity. Overall, the evidence shows that the Mexican legal environment poses serious problems for access to capital.

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File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=WP-564&pub_file_name=pubWP-564.pdf
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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4466.

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Date of creation: Jul 2006
Handle: RePEc:idb:wpaper:4466
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  17. repec:hrv:faseco:30728041 is not listed on IDEAS
  18. Erik Berglof & Ernst-Ludwig von Thadden, 1999. "The Changing Corporate Governance Paradigm: Implications for Transition and Developing Countries," William Davidson Institute Working Papers Series 263, William Davidson Institute at the University of Michigan.
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