Affordable Access

Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market

Authors
  • Brière, Marie
  • Szafarz, Ariane
Publication Date
Mar 01, 2015
Source
HAL-UPMC
Keywords
Language
English
License
Unknown
External links

Abstract

This paper is the first to draw a global picture of worldwide microfinance equity by taking full advantage of daily quoted prices. We revisit previous findings showing that investors shouldconsider microfinance as a self-standing sector. Our results are threefold.First, microfinance has become less risky and more closely correlated with the financial sector.This convergence is associated with a decline in the proportion of women borrowers. Second, microfinance and finance shares have equivalent currency exposure. Last,introducing a self-standingmicrofinance sector presents few diversification benefits.This paper confirms thatmicrofinance has changed dramatically during the last decade.

Report this publication

Statistics

Seen <100 times