Open AccessFinancial effects of the corporative government and ethics in Mexico’s businesses: the case of Cemex and TV-Azteca
Author(s) -
Pablo López Sarabia
Publication year - 2007
Publication title -
revista ibero-americana de estratégia
Language(s) - English
Resource type - Journals
ISSN - 2176-0756
DOI - 10.5585/ijsm.v5i1.102
Subject(s) - government (linguistics) , value (mathematics) , debt , commission , ethical code , business , code of conduct , finance , code (set theory) , accounting , economics , law , political science , philosophy , linguistics , set (abstract data type) , machine learning , computer science , programming language
This article shows that the bad practices of the corporative government and the ethical absence can affect the financial performance of the companies specially its market value. It is analyzed the TV-Azteca which faces a swindle demand for a rebuying of debt violating the regulation of the versatile market of the United States specially the Sarbanes-Oxley Law, the econometric results show that the value and the price of the company have decreased since the beginning of the Securities and Exchange Commission (SEC) research. The Cementos Mexicanos (Cemex) is a company that developed an internal code of ethics and that adjusted itself to the Código de Mejores Práticas Corporativas (Best Corporative Practices Code), besides being an enthusiastic motivator of the good practices of the corporative government.