CORPORATE GOVERNANCE AND DIVERSIFICATION OF FINANCING FOR NON-LARGE COMPANIES IN MEXICO GOBIERNO CORPORATIVO Y DIVERSIFICACION DEL FINANCIAMIENTO PARA LAS EMPRESAS NO GRANDES EN MEXICO

Rufina Georgina Hernandez-Contreras, Mario Aceves Mejia and Daniela Ximena De Ita Varela

Revista Global de Negocios, 2021, vol. 9, issue 1, 17-32

Abstract: This study proposes a new type of financing through stock market for small and medium-sized enterprises that comply with effective administrations through corporate governance. Mexican companies face financing access difficulties similar to those in other countries. However, in some countries they havedeveloped a number of efficient financing strategies. This work demonstrates that corporate governance is a fundamental aspect for accessing better financing opportunities, and therefore, facilitates the entry of non-large companies to more strategic financing instead of bank loans. An example is the access of medium and small companies to the stock market, when they have corporate governance that makes their own administration efficient. Through the results of 125 surveys of non-financial companies in the country, the feasibility of opting for financing through the stock market and avoiding traditional financing is analyzed. The findings show that more professional administration gives a high probability of motivating small and medium-sized enterprises to obtain better financing mechanisms, as well as their own competitiveness by having more professional and efficient administrations. A better management through corporate governance would represent a reward or recognition for the companies to access the stock market

Keywords: Financial Strategy; Corporate Governance; Business Financing (search for similar items in EconPapers)
JEL-codes: G10 G32 M14 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:rgnego:v:9:y:2021:i:1:p:17-32

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