Report of the General Director
Our thesis, therefore, is that the process that the most successful companies have undergone in recent decades is closely linked to a phenomenon that runs parallel to globalization: the democratization of capital. This trend has resulted in some spectacular examples of companies that have positioned themselves as leaders in the markets, or have even created markets that didn't exist before, and that in only a few years evolved from simple innovative ideas to become multi-national companies. In these success stories we frequently see two important common factors:
- The first is the incorporation of best corporate governance practices, which ensure a healthy cooperation in the most avant-garde of ownership structures. This is because they involve a host of new elements in the business project: the commitment not only of managers and partners, but the crucial participation of employees that are increasingly being viewed as partners; of vendors that also act as partners in the supply chain; and among the many other players that fall into the generic category of stakeholders, there are also environmental and social groups, who encourage modern companies--also as part of their good corporate governance--to behave as good citizens and socially responsible corporations.
- But what is even more important to our thesis, is that the second common denominator in corporate success is the transition to becoming publicly-owned corporations. Companies do so by issuing stocks or bonds on the organized securities markets, thereby assuming an unparalleled level of commitment and a transparent administration that opens them to public scrutiny and the highest standards of control.
Combining these two ideas, we can conclude that the securities market can be viewed as a bridge between investors seeking a wide range of investment options, and companies that are not only seeking financing--which is in itself important--but are building state-of-the-art business models. In the global business environment, this has proven to be a trait not only of the largest companies, but also the most successful, the most well-prepared to compete with the highest standards, the most transparent, and those with models open to the creation of value. One thing that in this light is particularly important for Mexico is that the successful companies--of which there are many--that have entered the securities market and introduced high standards of corporate governance have not necessarily ceased to be family-owned, nor have they surrendered control to outsiders. What they have done, and commendably so, is to heed the basic principles of the securities market, giving the investing public sufficient confidence to extend financing to them at the lowest cost, and with the least restrictions possible on the resources they need for their expansion.
This, in brief, is the new paradigm we want to communicate to the many businesses that have on paper what it takes to become public corporations but have not decided to take that step. They should be aware that in holding back, they are leaving open the opportunity for others to follow the same path of expansion outlined above; a path in which, again, the securities market is a mere facilitator that allows financing to flow, and brings financial resources to Mexico on competitive, world-class conditions of cost and access.
Finally, I would only like to reiterate, on behalf of AMIB, our profound gratitude to all the people who collaborate in our many areas, working toward the principles of availability and efficiency in resource allocation that should be inherent to all securities markets. We are also grateful to the various authorities with which we constantly interact, precisely to defend these principles, which can be summed up in the maxim of a fair market for all participants. On this, the regulators and we in the securities industry share a common vision.
Sincerely,
Efrén del Rosal Calzada
Director General
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