Determinant of Corporate Governance in Wal-Mart de Mexico (WALMEX)

The purpose of this study is conducted is to determine the impact of corporate governance index of Wal-Mart de Mexico in relation to its determinants. When carried out this study, five-year data from annual report of Wal-Mart de Mexico was extracted start from year 2004 to 2008. Corporate governance index (CGI) has become dependent variable of this study and was used to study its relationship with independent variable which consist of firm-specific factors (return on asset (ROA), return on equity (ROE), Tobin’s Q and Altman Z) and macroeconomic factors (Gross Domestic Product (GDP), unemployment rate and inflation rate). To obtain the correlation and regression result on what factor that influence the corporate governance index of Wal-Mart de Mexico, enter method was used. Based on regression result of this study, Tobin’s Q become factor that most significant influence and give impact to the corporate governance index of Wal-Mart de Mexico (WALMEX).