Executive Managers in Large Mexican Family Businesses

The involvement of members of owners' families in the running of large family businesses in Mexico is decreasing. Although family members still hold key posts such as that of CEO, other executive posts tend to be delegated to professional salaried managers. Top managers, including family members, share some common characteristics. They are young compared with managers in other developed countries, their quality as human resources is high, and many of them are graduates of overseas MBA courses. Most of them are sufficiently experienced. Improvement of quality among top managers is a recent phenomenon in Mexico, and has been encouraged mainly by the following two factors. First, globalization of business activities was promoted by intense competition among firms under conditions of market liberalization. In order to equip themselves with the ability to cope with the globalization of their operations, large family businesses tried hard to improve the quality of top management, by training and educating existing managers, and/or by recruiting managers in the outside labor market. Second, developments in the Mexican economy during the 1990s led to a growth in the labor market for top managers Thus, business restructuring caused by bankruptcy, as well as mergers and acquisitions, privatization and so on, led to the dismissal of business managers who then entered the labor market in large numbers. The increasing presence of these managers in the labor market helped family businesses to recruit well-qualified senior executives.

Family Business in Mexico: Responses to Human Resource Limitations and Management Succession

Indigenous firms in Mexico, as in most developing countries, take the shape of family businesses. Regardless of size, the most predominant ones are those owned and managed by one or more families or descendent families of the founders. From the point of view of economics and business administration, family business is considered to have variety of limitations when it seeks to grow. One of the serious limitations is concerning human resource, which is revealed at the time of management succession. Big family businesses in Mexico deal with human resource limitations adopting measures such as the education and training of the successors, the establishment of management structure that makes control by the owner family possible and divisions of roles among the owner family members, and between the owner family members and the salaried managers. Institutionalization is a strategy that considerable number of family businesses have adopted in order to undergo the succession process without committing serious errors. Institutionalization is observed in such aspects as the establishment of the requisite condition to be met by the candidate of future successor and the screening by an institution which is independent of the owner family. At present these measures allow for the continuation of family businesses in an extremely competitive environment.

Institutional Development of Capital Markets in Nine Asian Economies

This paper is conducting a comparative analysis of the development of securities markets in nine Asian economies: Korea, Taiwan, Hong Kong, Singapore, Malaysia, Thailand, Indonesia, the Philippines, and China. This study focuses on two aspects: the history and institutional development of securities market, such as legal systems, payment systems, etc. From the analyses, this paper reveals several common features of the development of securities markets in nine Asian economies. First, most economies had an informal capital market in the early period of their history. Second, the background of the foundation of their official markets was influenced by experiences of colonization. Third, most governments recognized the importance of the capital market for economic development and had a positive attitude in promoting the market. Fourth, statistics clearly showed that most economies experienced several booms in their capital market from the late 1980s.

Separation of Control and Cash-Flow Rights of State Owned Listed Enterprises: Channels of Expropriation after the Discriminated Share Reform in China

Literature on agency problems arising between controlling and minority owners claim that separation of cash flow and control rights allows controllers to expropriate listed firms, and further that separation emerges when dual class shares or pyramiding corporate structures exist. Dual class share and pyramiding coexisted in listed companies of China until discriminated share reform was implemented in 2005. This paper presents a model of controller to expropriate behavior as well as empirical tests of expropriation via particular accounting items and pyramiding generated expropriation. Results show that expropriation is apparent for state controlled listed companies. While reforms have weakened the power to expropriate, separation remains and still generates expropriation. Size of expropriation is estimated to be 7 to 8 per cent of total asset at mean. If the "one share, one vote" principle were to be realized, asset inflation could be reduced by 13 percent.

Changes in source of profits and business strategies? : some evidence from the Philippines' universal banks in the 2000s

In the 2000s, the Philippines' local banking sector have conducted very conservative lending behavior and at the same time, gradually but continuously improved their profitability in terms of ROE (return on equity). A set of analyses on the flow of funds and segment reports (information) of local universal banks, whose loans outstanding to the industrial sector have dominated more than three fourths of the total outstanding, shows that (1) they have actively manage assets overseas, (2) their profitability has come from investment activities in the securities markets, and (3) some universal banks have shifted their resources into the consumer/retail segment. Although further refinement in the dataset is needed for a more detailed analysis, diverse business strategies would be expected among the local universal banks in the near future.

Equity pricing in the mining sector: evidence from NYSE and LSE

The study examines the Capital Asset Pricing Model (CAPM) for the mining sector using weekly stock returns from 27 companies traded on the New York Stock Exchange (NYSE) or on the London Stock Exchange (LSE) for the period of December 2008 to December 2010. The results support the use of the CAPM for the allocation of risk to companies. Most companies involved in precious metals (particularly gold), which have a beta value less than unity (Table 1), have been actuated as shelter values during the financial crisis. Values of R2 do not shown very explanatory power of fitted models (R2 < 70 %). Estimated coefficients beta are not sufficient to determine the expected returns on securities but the results of the tests conducted on sample data for the period analysed do not appear to clearly reject the CAPM

Le Corbusier y el proyecto para Saint Marie de la Tourette: De la celda al espacio inefable

El convento de la Tourette se concibe en un marco temporal concreto. Sin embargo sería erróneo limitarse a él a la hora de intentar desentrañar las claves del proyecto y llegar a un entendimiento completo del mismo. Es necesario analizarlo atendiendo al conjunto global de la producción del arquitecto, la cual ha ido forjando una forma propia de hacer que condicionará en gran medida las decisiones tomadas en cada momento. Esta tesis realiza una investigación de doble sentido (recogida en los dos volúmenes que la componen). Por un lado analiza el proceso evolutivo en el que se enhebra la obra intentando desentrañar la influencia de aquel en ésta, pero por otro, invirtiendo el sentido, también desvela ciertas claves de la arquitectura de Le Corbusier a través del preciso análisis de proyecto de la Tourette. Pero aún más, la pertenencia del convento de la Tourette al “tipo monacal” introduce la presencia de un tiempo histórico “ab origine, in hillo tempore” del que la investigación se hace eco. Un tiempo al que Le Corbusier siempre volverá la mirada, y que en este caso se encuentra muy presente, determinando el devenir del proyecto de una forma particular y definitiva. Por tanto este trabajo pretende convocar los dos tiempos que conviven en el proyecto del convento de la Tourette, el corto, concreto y cerrado de su génesis y desarrollo, que se circunscribe al periodo de proyecto comprendido entre los años 1953 y 1956, y el más dilatado, abstracto y abierto, que enlaza el proyecto con la producción de Le Corbusier, y aún más atrás, con el tiempo histórico. En la primera parte del trabajo (A. “PROYECTO”) se realiza un análisis cronológico de la documentación gráfica ‐incluyendo su re‐dibujo‐ y escrita del proyecto, desde los croquis que el arquitecto esboza en su primera visita al valle del Turdine hasta el documento final del project d’exécution, a partir del cual se materializará la obra. El objetivo de la investigación no es describir la realidad construida, sino participar del secreto de su génesis analizando y intentando comprender los dibujos o el pensamiento de sus creadores. Frente a la multitud de escritos sobre la obra del convento de la Tourette el foco de atención de la tesis se centra en el proyecto. Es en esta fase de elaboración y desarrollo de las ideas, previa a la acción de construir, donde pensamos que La deriva de la propia actividad del arquitecto avala esta decisión. A lo largo de su carrera Le Corbusier va reduciendo progresivamente su presencia en la obra centrándose cada vez más en las fases de la concepción y proyecto arquitectónico. Considera que en ellas se produce lo “esencial” mientras que deja las decisiones de obra en manos de sus colaboradores y de los diversos “operadores”, participando tan solo en el visto bueno final de las mismas (esta posición contrasta con la entrega de los constructores para quienes el arquitecto encarna la innovación tecnológica). En la Tourette realiza exclusivamente tres visitas de obra en las que actúa como un mero escenógrafo, ajustando aquí y allá pequeñas decisiones de la construcción. Esta distancia refuerza su posición en el proceso y subraya su búsqueda de un ideal teórico desarrollado sobre todo en la fase de proyecto frente a lo subsidiario de la realidad práctica. En la segunda parte de la tesis, denominada “RE‐VISIONES”, se abre el campo de acción a otras facetas de la ingente actividad de Le Corbusier como la pintura, la escritura o incluso la escultura; una nueva MIRADA bajo el prisma de una serie de conceptos‐llave recurrentes en su Petit vocabulaire (l’homme, la céllule, la bôite, l’organisme). Se amplía, por tanto, el marco temporal, repasando de modo genérico y transversal la evolución de los mismos en la trayectoria del arquitecto, comprobándose como el convento de la Tourette es un eslabón característico y clave en todos ellos. ABSTRACT The Convent of La Tourette is conceived in a specific time frame. However, it would be erroneous to limit oneself simply to this when trying to unravel the keys to the project and to fully understand it. It is necessary to analyse the project attending to the entire production of the architect, who progressively shaped his own way of doing things which would condition to a large extent the decisions taken at each point in time. This thesis carries out its research in a dual sense (brought together in both its volumes). On the one hand, it analyses the development process threading the work attempting to fathom the influence of the former on the latter but, on the other hand, inverting the sense which also reveals certain keys to the architecture of Le Corbusier by means of a detailed analysis of the project for La Tourette. Even more so, the Convent of La Tourette belonging to the “monastic type” introduces the presence of a historical period “ab origine, in hillo tempore" reflected in the research. A period to which Le Corbusier would always look back on and which is extremely present in this case, determining the evolution of the project in a particular and definitive manner. Therefore, this piece of work attempts to bring together both time periods co‐existing in the project for the Convent of La Tourette, the short, specific and closed one regarding its genesis development, encompassing the project period going from 1953 to 1956, and the broader, more abstract and open one linking the project with the production by Le Corbusier, and even further back, with the historical period. The first part of this work (A. “PROJECT") performs a chronological analysis of the graphic – including its re‐drawing –and written documentation of the project, from the outlines the architect sketched in his first visit to the Turdine valley up to the final document of the project d’exécution from which the works would materialise. The main object of the investigation is not intend to describe the reality constructed, but to participate in the secret of its genesis, analysing and trying to understand the drawings or the thoughts of its creators. As opposed to the many writings on the work of the Convent of La Tourette, the attention of this thesis focusses on the project. It is in this preparation and development stage, previous to the construction action, where it is believed the real keys to understand and explain it lie. The enormous work collecting, ordering and analysing the abundant graphic and written information reveals “a multidirectional process, full of regrets and securities, errors and certainties, leaps backwards and tremendous foresight in the process” directed not only by the conditions of the assignment, but also by the way of doing things of Le Corbusier and his collaborator I. Xenakis. A web of hidden relationships is weaved in this open space of the process, often distant in time, allowing us to draw a new route, not only towards the constructed works of the Convent of La Tourette, but towards understanding his entire production. It is in the creation of this new path of knowledge, and not only in its conclusion, where the “thesis” acquires its true meaning. In second place, the drift in the actual activity of the architect backs this decision. Throughout his career, Le Corbusier progressively reduced his presence on site, focussing more and more on the conception and architectural project stages. He considered that which was “essential” took place in these, while leaving the on‐site decisions to his collaborators and the different “operators”, only participating in their final approval (this position is in contrast with the delivery by the constructors for whom the architect embodies the technological innovation). In La Tourette he exclusively made three on‐site visits, in which acted as a pure stage designer, adjusting small construction decisions here and there. This distance reinforces his position in the process and underlines his search for a theoretical ideal developed primarily in the project stage as opposed to that which is secondary of the practical reality. The second part of the thesis, called “RE‐VISIONS”, widens the scope of action to other aspects of the huge activity by Le Corbusier, encompassing painting, writing or even sculpture; a new VIEW under the prism of a series of recurrent key concepts in his Petit vocabulaire (l’homme, la céllule, la bôite, l’organisme). The time frame is therefore extended, revising in a generic and transversal manner the development of these concepts throughout the career of Le Corbusier, confirming how the Convent of La Tourette is a characteristic and key link to each of them.

Los instrumentos convertibles en acciones para la financiación empresarial en un entorno económico de restricción del crédito bancario

(SPA) Los bonos convertibles en acciones son instrumentos de financiación corporativa que en general comparten varias de las características de las emisiones de deuda senior corporativa, como el pago regular y fijado de cupones, vencimiento definido, momento en el que se repaga la totalidad del principal, y prelación en caso de default con respecto a otras obligaciones crediticias. En cambio, el repago del principal se ofrecerá bajo determinadas circunstancias en acciones de la compañía emisora en una proporción acordada previamente. Pero los instrumentos convertibles son instrumentos heterogéneos que suelen incorporar otras características particulares a cada caso, como son repagos anticipados bajo determinadas condiciones, reducción del ratio de conversión a determinados precios de la acción, pagos compensatorios o "make-whole" y otros. Los instrumentos convertibles son ejemplos de activos híbridos que comparten características de deuda y de capital y por tanto tienen impacto específico en la contabilidad de las empresas y en la posible dilución de sus accionistas. En España y otros países de la periferia de Europa, la emisión de bonos convertibles ha aumentado considerablemente desde el inicio de la crisis financiera, fundamentalmente debido a la restricción de otras formas de crédito empresarial, principalmente los créditos bancarios. En el presente artículo se explican algunas de las características comunes a los bonos convertibles emitidos recientemente por empresas españolas, se analizan las ventajas, y las razones para la emisión de estos activos, y se indican sus implicaciones contables. Los instrumentos convertibles pueden ser una alternativa estable a la deuda bancaria y a la renta fija tradicional en los mercados de capitales para la financiación de las compañías medianas, que tienen menos acceso a fuentes de financiación en situaciones de aversión riesgo por parte de los inversores y entidades financieras. (ENG)Convertible bonds share several characteristics with secure corporate debt, such as the regular coupon payments, fixed maturity and similar seniority in case of default. Nevertheless the investor of the convertible bond has the option of receiving the principal amount repayment at maturity in cash or receiving a previously agreed number of shares. But convertible securities can be complex financial instruments that possess exotic or specific features, such as soft calls, put options, cash options, cash top up features, or make whole amounts. Convertible securities are hybrid instruments that share characteristics of both debt and equity, and therefore suffer an specific accounting treatment under International Financial Reporting Standards, where the issuing company must separately identify the debt and equity components in its financial statements In peripheral European countries and in Spain in particular, convertible issuance has significantly increased since the start of the Global Financial Crisis, an increase mainly driven by the restriction of other forms of credit, namely banking loans. This article summarizes some of the common characteristics of convertible securities, analyzes its advantages for both issuers and investors, and introduces the accounting of convertible bonds. Convertible Bonds can become a viable and stable alternative to bank loans and to high yield or investment grade bonds for the funding of mid-sized corporates which normally have a more difficult access to credit in regional banking crisis or credit restrictive environments.

Corporate social responsibility in portfolio selection: A "goal games" against nature approach

Nowadays, there is an uprising social pressure on big companies to incorporate into their decision-making process elements of the so-called social responsibility. Among the many implications of this fact, one relevant one is the need to include this new element in classic portfolio selection models. This paper meets this challenge by formulating a model that combines goal programming with "goal games" against nature in a scenario where the social responsibility is defined through the introduction of a battery of sustainability indicators amalgamated into a synthetic index. In this way, we have obtained an efficient model that only implies solving a small number of linear programming problems. The proposed approach has been tested and illustrated by using a case study related to the selection of securities in international markets.

UMA ANÁLISE DA RELAÇÃO ENTRE VARIÁVEIS MACROECONÔMICAS E O COMPORTAMENTO DAS AÇÕES DE MAIOR LIQUIDEZ DO ÍNDICE IBOVESPA

As ações de maior liquidez do índice IBOVESPA, refletem o comportamento das ações de um modo geral, bem como a relação das variáveis macroeconômicas em seu comportamento e estão entre as mais negociadas no mercado de capitais brasileiro. Desta forma, pode-se entender que há reflexos de fatores que impactam as empresas de maior liquidez que definem o comportamento das variáveis macroeconômicas e que o inverso também é uma verdade, oscilações nos fatores macroeconômicos também afetam as ações de maior liquidez, como IPCA, PIB, SELIC e Taxa de Câmbio. O estudo propõe uma análise da relação existente entre variáveis macroeconômicas e o comportamento das ações de maior liquidez do índice IBOVESPA, corroborando com estudos que buscam entender a influência de fatores macroeconômicos sobre o preço de ações e contribuindo empiricamente com a formação de portfólios de investimento. O trabalho abrangeu o período de 2008 a 2014. Os resultados concluíram que a formação de carteiras, visando a proteção do capital investido, deve conter ativos com correlação negativa em relação às variáveis estudadas, o que torna possível a composição de uma carteira com risco reduzido.

As entidades fechadas de previdência complementar enquanto instrumentos de atuação do Estado na economia

Com as transformações ocorridas nas últimas décadas do século XX, notadamente a expansão financeira pela qual passou o capitalismo, o enfraquecimento fiscal dos Estados nacionais e o questionamento aos sistemas de previdência pública por repartição, ganham importância em todo o mundo os fundos de pensão. Estes fundos, ao lado de outros investidores institucionais, como seguradoras e fundos de investimentos, passam a cumprir papel central no mercado acionário e também no mercado de títulos públicos e privados. Com o objetivo de realizar lucros para pagar benefícios de aposentadoria para os seus participantes, os fundos de pensão arrecadam e concentram poupança privada pulverizada, transformando-a em um ativo poderoso. No Brasil, as Entidades Fechadas de Previdência Complementar nomenclatura jurídica dos fundos de pensão possuem um total de 702 bilhões de reais em ativos, que se concentram nas três maiores entidades do país: Previ, Petros e Funcef. Em comum, estes três fundos têm o fato de serem patrocinados por empresas estatais, o que, pela legislação vigente, dá ao Poder Executivo a competência de indicar metade de seus dirigentes, incluindo o seu presidente que possui voto de desempate. O presente trabalho pesquisou o papel que estas três EFPCs cumprem enquanto instrumento de atuação do Estado no domínio econômico, especialmente para o provimento de fundos para o desenvolvimento. Para isso, primeiramente, o estudo explora o movimento de expansão financeira do capitalismo e a crise no padrão de desenvolvimento brasileiro. Depois, investiga de maneira sistemática o arcabouço jurídico que regula os fundos de pensão; e, por fim, analisa a alocação dos seus investimentos e o perfil dos seus dirigentes.

Contribuições do direito norte-americano ao sistema de proteção do investidor no mercado de capitais brasileiro

O atual arcabouço normativo de proteção do investidor no mercado de capitais brasileiro teve suas linhas mestras cravadas pela reforma bancária introduzida pelas Leis 4.595, de 31 de dezembro de 1964, e 4.728, de 14 de julho de 1965, pela criação de um regulador especializado em mercado de capitais pela Lei 6.385, de 07 de dezembro de 1976, e pela reforma da legislação das sociedades anônimas introduzida pela Lei 6.404, de 15 de dezembro de 1976. Desde 1976, o arcabouço normativo de proteção do investidor no mercado de capitais brasileiro vem sendo desenvolvido a partir dessas linhas mestras iniciais, incorporando as lições aprendidas com as turbulências e euforias vividas pela economia nacional. Esse arcabouço normativo que aí está desde 1976 foi inspirado por contribuições do direito federal norte-americano, as quais foram conscientemente captadas no Brasil pelo legislador e pela comunidade jurídica nacional. Difundiram-se internacionalmente dos EUA para o Brasil os preceitos da proteção do investidor no mercado de capitais calcados na existência de um órgão regulador do mercado de capitais, na divulgação de informações relevantes para decisões de investimento (disclosure), na regulação funcional dos agentes do mercado de capitais e na vedação de fraudes com valores mobiliários.

Staying in the Delaware Corporate Governance Lane: Fee Shifting Bylaws and a Legislative Reaffirmation of the Rules of the Road

The Delaware legislature has taken steps towards the adoption of amendments to the Delaware General Corporation Law (DGCL) that would prohibit fee shifting provisions in the articles and bylaws. The language in the legislative proposal, however, addresses fee shifting provisions only in the context of "internal corporate claims." Some have raised concerns that this language would allow for fee shifting provisions that applied to other types of actions, including at least some cases brought under the securities laws. This piece suggests that in fact the Delaware General Corporation Law already prohibits the adoption of bylaws and certificate provisions that apply to causes of action unrelated to internal corporate claims. As a result, there was no reason for the Delaware legislature to expressly bar fee shifting provisions in these types of actions.

Legislative Proposals to Modernize Business Development Companies and Expand Investment Opportunities, Testimony Before the House Subcommittee on Capital Markets and Government Sponsored Enterprises

This testimony discusses proposed legislation to amend the definition of accredited investor. It also discusses proposed legislation designed to reform the regulatory framework for business development companies. Among other things, the regulatory regime for BDCs would change to allow these companies to invest a greater portion of their assets in financial companies, potentially reducing the percentage of assets invested in operating companies.

Can Europe recover without credit? Bruegel Policy Contribution 2013/03, 15 February 2013

• Data from 135 countries covering five decades suggests that creditless recoveries, in which the stock of real credit does not return to the pre-crisis level for three years after the GDP trough, are not rare and are characterised by remarkable real GDP growth rates: 4.7 percent per year in middle-income countries and 3.2 percent per year in high-income countries. • However, the implications of these historical episodes for the current European situation are limited, for two main reasons: • First, creditless recoveries are much less common in high-income countries, than in low-income countries which are financially undeveloped. European economies heavily depend on bank loans and research suggests that loan supply played a major role in the recent weak credit performance of Europe. There are reasons to believe that, despite various efforts, normal lending has not yet been restored.Limited loan supply could be disruptive for the European economic recovery andthere has been only a minor substitution of bank loans with debt securities. • Second, creditless recoveries were associated with significant real exchange rate depreciation, which has hardly occurred so far in most of Europe. This stylised fact suggests that it might be difficult to re-establish economic growth in the absence of sizeable real exchange rate depreciation, if credit growth does not return.