عنوان
پدید آورنده
موضوع
رده
کتابخانه
محل استقرار
TLets320220
The use of equity finance by development finance institutions in Malawi.
[Thesis]
McKendry, Ian Michael.
University of Sussex
1992
Ph.D.
University of Sussex
1992
The main purpose of the thesis is to investigate one possible reason forthe poor performance of Development Finance Institutions, and consequentlyto identify one possible way in which future performance might be improved.Financial Institutions can choose from two main investment instruments: loanand equity. Most DFIs have chosen to use loans almost exclusively. However,equity funding has a number of potential advantages over loans. One suchadvantage is equity's ability to compensate for risk, thus allowing a DFI toinvest in higher risk projects which have the potential for higher returns.The research considers two DFIs in Malawi, both of which invest loan andequity finance. Five hypotheses are used to test whether equity's potentialadvantages have been of practical benefit. Each of these hypotheses issummarised below, followed by the result of the research.i Equity financed projects are more fully funded than are loan financedprojects: not supported.ii The servicing cost of equity finance is more flexible, but the overallreturns to equity are higher for the DFI: only the second partsupported.iii Further funding is more likely to be provided in equity cases: onlyweakly supported.iv Some investments can only be financially justified by using equity: notsupported.v More management help is given by the DFI in the case of equityinvestments: supported.A sixth hypothesis considers whether other factors, such as projectappraisal methodology, external political pressure and internal operatingprocedures may have outweighed financial considerations such as the choicebetween equity and loan finance. (If so, then the potential advantages ofequity would not have resulted in much practical benefit. ) There isevidence, although it is not conclusive, to support this hypothesis.The thesis concludes that the DFIs examined have hardly used the potentialadvantages of equity. The likeliest explanation for this appears to be thatdecisions on whether or not to use equity finance were dominated by theother factors identified in the sixth hypothesis.
Banking
McKendry, Ian Michael.
University of Sussex
مطالعه متن کتاب p
[Thesis]
276903
a
Y
