Actions Speak Louder than Words: A Case Study on Mexican Corporate Governance

In this case, you will examine corporate governance in an international context and gain a thorough understanding of the ramifications of the Sarbanes‐Oxley Act of 2002 (SOX), as you observe very different reactions to the provisions of SOX by two Mexican companies, both of whom were trading on the NYSE at the time SOX was enacted. One company, TV Azteca, withdrew from the exchange on the grounds that U.S. regulations ignore Mexico's legal framework and corporate culture. You are required to contrast TV Azteca's response with the actions of another Mexican company, Cemex, which embraces the concepts of SOX. Cemex views compliance with SOX as an integral component of its corporate governance and sees it as necessary for continued access to international capital markets.