International diversification and Microfinance

Performance of Listed Microfinance Institutions

“…Indeed, according to the authors, microfinance investment vehicles (MIVs) do not show any positive correlation with global or emerging capital markets. These conclusions are consistent with the studies of Galema et al (2011) and Kraus and Walter (2009). Janda and Svárovská (2010) also conclude that MIVs do not reach any added returns above those returns that compensate an investor for an identical risk measured by the beta.…”

“…The majority of studies examining the performance of microfinance retain accounting indicators as variables (Daher and Le Saout, 2013). Some studies (Ahlin et al, 2010;Galema et al, 2011;Gonzalez, 2007;Krauss and Walter, 2009) have initiated research that analyzes the correlation between the performance of microfinance based on accounting indicators, the performance of the financial markets, and the performance of the national economy. Among the studies that deal with the perfor mance of microfinance investments in financial markets, we mention Oehri and Fausch (2008), Svárovská (2010, 2012), Galema et al (2011), andBrière andSzafarz (2013).…”

“…These preliminary results should be reviewed closely, taking into account the characteristics of the examined sample and the recent history of the finan cial markets, which is characterized by successive financial and banking crises. Galema et al (2011) investigate whether the inclusion of microfinance funds in a benchmark portfolio of inter national risky assets generates diversification gains. The analysis is based on the mean-variance spanning test.…”

A meta-analysis examining the nature of trade-offs in microfinance

“…Given the increased commercialization of the microfinance industry, another faction of literature has begun to contextualize microfinance within the broader macroeconomic environment (Galema et al, 2011;Ahlin et al, 2011;Brière and Szafarz, 2015). As the majority of non-profit institutions are often legally restricted from taking public deposits and since domestic capital markets are often underdeveloped, international capital markets play an important role for the future funding of MFIs (Galema et al, 2011).…”

“…As the majority of non-profit institutions are often legally restricted from taking public deposits and since domestic capital markets are often underdeveloped, international capital markets play an important role for the future funding of MFIs (Galema et al, 2011). Using a sample of 373…”