Corporate Governance, Ownership Structure and Performance in Mexico

Juan Manuel San Martín Reyna, Rocío Durán Vázquez, Arturo Lorenzo Valdés


This article studies the relation between ownership structure and performance of 90 Mexican firms for the period 2005-2009. We used a two-stages least squares (2SLS) and generalized method of moments (GMM) because we consider the ownership structure as endogenous, and wish will be the most appropriate given the characteristics of the environment in which the company operates (Shlelifer & Vishny, 1997; La Porta et al., 2000). The results obtained show a greater performance as to how ownership is concentrated in the Mexican market. This result derives from the institutional framework prevailing in the country where the companies were analyzed. In the Mexican case, the firms with high levels of ownership concentration, especially families, seek a better way to protect their interests. However, this high concentration in families leads to the use of additional governance mechanisms, such as debt or board structure, that have peculiar results (works such as substitutes or reinforcing components).

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International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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