Analysis of publicly listed microfinance equity diversification potential and possible mission drift
|Author:||Mgr. Karel Pfeffer|
|Year:||2017 - winter|
|Leaders:|| prof. Ing. Karel Janda M.A., Dr., Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||The objective of this master thesis is to investigate, whether equity of publicly listed Microfinance
institutions (MFIs) can be used for portfolio diversification, while these MFIs still maintain its
original social mission. To explore these two aspects of publicly listed MFIs, this study is split in
two major parts.
The first part is focused on the comparison of risk and return characteristics of selected MFIs
shares with conventional financial institutions shares and market equity benchmark indices. The
analysis indicates no significant diversification potential in publicly listed microfinance equity.
The second part of this thesis is exploring the impact of IPO on publicly listed MFIs social
outreach. It was found some evidence of a drift from the original social mission among selected
MFIs. However, there is not enough evidence to claim that for-profit investment cause long-term
significant operational change of MFIs.