Financial performance and stock prices into delisting companies in MSE


  • Heriberto García Texas A&M International University,



Abstract. After the adoption of new regulations in Corporate Governance practices and Transparency following the trend of international financial markets, Mexican Stock Exchange has decreased in number of public companies during the last three decades we explored a comprehensive list of delisted companies during the same period to analyze and understand the motives and reasons of the deregistration process in Mexico. Delisted companies in MSE has experienced low financial performance and unexpected stable stock prices, our results
are related with systemic flaw in regulation, insider information and the opportunity to the MSE to increase in size and number of public companies.

Keywords: corporate governance, financial performance, insider information, regulation transparency

Resumen. Después de la adopción de nuevas regulaciones enfocadas a mejor gobierno corporativo y transparencia, la Bolsa Mexicana de Valores ha seguido la tendencia mundial en ambos conceptos sin embargo el número de compañías listadas ha decrecido en las últimas tres décadas. Exploramos las razones y motivos detrás del proceso de cancelación de registro de las compañías en México durante ese mismo periodo para entender mejor su funcionamiento. Encontramos que dichas compañías han tenido un desempeño financiero bajo y un inesperado precio de la acción estable, los resultados sugieren de que es probable que exista fuga de información a nivel sistema y la oportunidad de poder hacer crecer el número y tamaño de las compañías públicas.

Palabras clave: desempeño financiero, gobierno corporativo, información privilegiada, regulación, transparencia


Los datos de descargas todavía no están disponibles.


Cargando métricas ...


Aguilera, R. V., Kabbach-Castro, L. R., Lee, J. H., & You, J. (2011). Corporate governance in emerging markets. Working Papers. Retrieved from DOI:

Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2), 159. DOI:

Bartholdy, J., Olson, D., & Peare, P. (2007). Conducting event studies on a small stock exchange. The European Journal of Finance, 13(3), 227–252. DOI:

Bharath, S. T., & Dittmar, A. K. (2010). Why do firms use private equity to opt out of public markets? Review of Financial Studies, 23(5), 1771–1818. DOI:

Boot, A. W. A., Gopalan, R., & Thakor, A. V. (2008). Market liquidity, investor participation, and managerial autonomy: Why do firms go private? The Journal of Finance, 63(4), 2013–2059. DOI:

Brau, J. C., Francis, B., & Kohers, N. (2003). The choice of IPO versus takeover: Empirical evidence. The Journal of Business, 76(4), 583–612. DOI:

Céspedes, J., González, M., & Molina, C. A. (2010). Ownership and capital structure in Latin America. Journal of Business Research, 63(3), 248–254. DOI:

Comision Nacional Bancaria y de Valores. (2000). Codigo de Mejores Practicas. CNBV Boletin de Prensa.

Comision Nacional Bancaria y de Valores. (2005). Ley de Sociedades Mercantiles. CNBV Boletin de Prensa.

Corrado, C. J. (1989). A nonparametric test for abnormal security-price performance in event studies. Journal of Financial Economics, 23(2), 385–395. doi:10.1016/0304-405X(89)90064-0 DOI:

Corrado, C. J., & Truong, C. (2008). Conducting event studies with Asia-Pacific security market data. Pacific-Basin Finance Journal, 16(5), 493–521. DOI:

Das, S., Saudagaran, S. M., & Sinha, R. (2004). An empirical examination of NYSE stocks voluntarily de-listing from the Tokyo stock exchange. Review of Accounting and Finance, 3(4), 47–72. DOI:

Fama, E. F., Fisher, Lawrence, Jensen, M. C., & Roll, Richard. (1969). The adjustment of stock prices to new information. Internation Economic Review, 10(1), 1–21.

Fama, E., Fisher, L., Jensen, M., & Roll, R. (1969). The adjustment of stock prices to new information. Internation Economic Review, 10. Retrieved from DOI:

Garcia, H. (2011). Regulation, corporate governance on financial leveraged companies Mexico case. Business Studies Journal, 3(1), 59–94.

Khanna, T., & Palepu, K. (1997). Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4), 41–51.

Khanna, T., & Rivkin, J. W. (2001). Estimating the performance effects of business groups in emerging markets. Strategic management journal, 22(1), 45–74. DOI:<45::AID-SMJ147>3.0.CO;2-F

Leland, H. E., & Pyle, D. H. (1977). Informational asymmetries, financial structure, and financial intermediation. The Journal of Finance, 32(2), 371. DOI:

López de Silanes, F., La Porta, R., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106, 1113–1155. DOI:

Macey, J., O’Hara, M., & Pompilio, D. (2008). Down and out in the stock market: The law and finance of the delisting process. Journal of Law & Economics, 51, 683–710. DOI:

Mello, A. S., & Parsons, J. E. (1998). Going public and the ownership structure of the firm. Journal of Financial Economics, 49(1), 79–109. DOI:

Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433–443.

Patell, J. M. (1976). Corporate forecasts of earnings per share and stock price behavior: Empirical test. Journal of Accounting Research, 14(2), 246–276. DOI:

Sanger, G. C., & McConnell, J. J. (1986). Stock exchange listings, firm value, and security market efficiency: The Impact of NASDAQ. Journal of Financial and Quantitative Analysis, 21(01), 1–25. DOI:

Sanger, G. C., & Peterson, J. D. (1990). An empirical analysis of common stock delistings. The Journal of Financial and Quantitative Analysis, 25(2), 261–272. DOI:

Subrahmanyam, A., & Titman, S. (1999). The going-public decision and the development of financial markets. The Journal of Finance, 54(3), 1045–1082. DOI:

Wolf, M. (2004). Why Globalization Works. New Haven: Yale University Press.

Zingales, L. (1995). Insider ownership and the decision to go public. The Review of Economic Studies, 62(3), 425–448. DOI:




Cómo citar

García, H. (2017). Financial performance and stock prices into delisting companies in MSE. Innovaciones De Negocios, 10(19).