1. Discuss at least five characteristics that predict relatively low disclosure levels in Mexico....

Question

1. Discuss at least five characteristics that predict relatively low disclosure levels in Mexico. Your response should be based on a review of the material presented in Chapters 2 and 4 and this chapter, in addition to the case information above.2. Discuss characteristics or features that predict relatively high levels of disclosure in Mexico.3. Accounting measurement and disclosure practices are improving (from an investor-protection viewpoint) in many emerging-market economies. What are some of the recent improvements in these areas in Mexico? Discuss the underlying factors that help explain why the improvements are occurring. Again, refer to the material presented in Chapters 2 and 4 in addition to the case information above.
MINI CASE

Tyler Poland is a stock picker responsible for recommending Mexican securities for his brokerage firm’s clients. He is often frustrated about the lack of credible information on companies in Mexico. ?oEverything is always so top secret,?? he says. ?oAny time I try to learn about a company’s activities, all I hear is ?~I wouldn’t know what to tell you’.?? In
Mexico, it seems, information is power. Trivial or not, information seems to be off-limits to anyone who is not an insider. Tyler knows that this secretiveness goes way back in Mexico’s history. The Aztec rulers kept their subjects amazed by powerful deities who were both unpredictable and hard to understand. The Spanish followed many detailed bureaucratic rules but hardly ever shared them with ordinary Mexicans. After independence, the ruling political parties made sure that compromising information never got in the wrong hands. Historian and novelist Hector Aguilar Camin has written, ?oIn Mexico, powerful people have traditionally kidnapped information. Part of the process of democratization is freeing it.?? But ?othere is still a tendency to want to hold it hostage for some kind of benefit.??

David · Accepted Answer

Financial Analysis – Mexico  1
Financial Analysis – Mexico: Seeing is Believing 
Name of the student 
Student ID 
Name of the University 
Name of the Lecturer 
02/03/2015
Financial Analysis – Mexico  2 
Introduction 
 In the present case study, we will be evaluating the financial report disclosure in the 
country Mexico with relative to a case study presented before us.
Characteristics of relatively lower levels of disclosure in Mexico 
 Sources of Finance: The private sector funding in Mexico is primarily characterized by 
Family groups and banks. Thus this shows the dampening of the funding structure in Mexico 
which is also highly correlated with the lower levels of disclosure. 
 Government Intervention: The recent trend shows that Mexico is shifting to private sector but 
major of the sector still lies in the hands of the government. Further, the funding entities of 
Mexico has strong ties with the government officials which is why the disclosures are not 
fancied. 
 Legal structure of the country: Mexico still follows the existence of its code law system in 
the country. The code law systems do not favor high disclosures and thus Mexico is 
mandated to follow such lower levels of disclosures.  
 Development level of economy: The lower levels of disclosure is further associated with the 
levels of development in the economy. Given the economic conditions,

1. Discuss at least five characteristics that predict relatively low disclosure levels in Mexico. Your response should be based on a review of the material presented in Chapters 2 and 4 and this...

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