• What is Microfinance? Interesting Theoretical and Economic Critiques with Real Life Experiences in Guatemala

      Gorshkova, Anna (The University of Arizona., 2012-05)
      This study investigates the market reaction to the required expensing of employee stock options. The main focus of this thesis is to test whether the market reacts more negatively to stock options that are expensed on the income statement compared to stock options that are disclosed in the notes to the financial statements. The results are examined by transparency, conservatism, and the efficient market hypothesis. Over the recent decades, a new trend in development has emerged, shining hope on alleviating poverty in countries with underdeveloped economies. "Micro finance" strives to provide financial services to people who otherwise would not have access to these services and resources. In doing so, it hopes to incorporate those individuals into a broader economy. Undoubtedly, micro financing has helped individual people, but the overarching effect of alleviating poverty is debatable and should be examined in order to draw conclusions on how micro financing as a development tool can be improved. This project seeks to examine the micro finance industry, specifically with the involvement of women in Guatemala, with theoretical and economic critiques. The writer's personal internship experience at a microfinance NGO "Namaste Guatemaya" in Guatemala, is combined with independent research of academic texts and historical archives at CIRMA, the "Centro de Investigaciones Regionales de Mesoamerica" in Antigua. The writer concludes that although micro finance organizations provide crucial help to individuals, they should not be relied on as the sole development strategy of any underdeveloped country, including Guatemala. Larger structural changes are crucial in order for true development to occur.