Do women borrowers augment financial performance of MFIs?

Abdullah, Shahnaz; Quayes, Shakil

doi:10.1080/00036846.2016.1181831

Cited by 69 publications

(67 citation statements)

References 32 publications

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“…This might be because women still have less power in decisions regarding financial undertakings and are forced into financial dependency on their husbands in Ethiopia. Contrary to our finding, Abdullah and Quayes [78] found a positive relationship between the percentage of woman members and financial performance. On the other hand, the findings of Boehe and Barin Cruz [77] showed that there was a negative relationship.…”

Section: Fixed Effects Regression Resultscontrasting

confidence: 99%

Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia

Duguma

Han

2018

Sustainability

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Increasing institutional capital through deposit mobilization keeps the cost of capital low, thus leading to financial sustainability. However, little is known about how deposit mobilization affects financial sustainability. Using balanced panel data of 166 rural savings and credit cooperatives (RUSACCOs) from Ethiopia over the period of 2014-2016, we investigated the effect of deposit mobilization on financial sustainability. The results of the panel regression estimates showed that, among the deposits mobilization variables, the deposit to loan ratio, deposit to total asset ratio, the volume of deposits, and demand deposit ratio had a significant direct impact on financial sustainability. The fixed effect regression result for interest rate spread showed that an inverse relationship existed between the interest rate spread and financial sustainability. Furthermore, according to our robust fixed effect regression results, among the control variables, the age of the institution and inflation rate affects financial sustainability. Contrary to our expectations, the number of members and the percentage of woman members were not significant. This may be attributed to the fact that some members were inactive for a long period. We suggest that RUSACCOs should focus on deposit mobilization specifically on demand deposits and keep the interest rate spread narrower to ensure their sustainability.

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Section: Fixed Effects Regression Resultscontrasting

confidence: 99%

Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia

Duguma

Han

2018

Sustainability

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“…ROA as a proxy of FP to gauge profitability calculated as the ratio of net operating income and total assets (Abdullah & Quayes, 2016;Arrassen, 2017;Assefa, Hermes, & Meesters, 2013;Mersland & Strøm, 2009;Meyer, 2019;Rosenberg, 2009) ROA signals MFPs' capabilities of producing sound rate of returns that can keep the investors satisfied and of survival as to be in the business of microfinance (Adhikary & Papachristou, 2014). Profitability can be translated as a gesture of institutional logic dominance whereas the lower levels can be a sign of welfarist approach followed by MFPs (Im & Sun, 2015).…”

Section: Variables 321 Dependent Variablesmentioning

confidence: 99%

“…PMR is the ratio of net operating income by operating revenue, used as another proxy of FP of MFPs, that shows the percentage of income is from every unit of revenue earned (Abdullah & Quayes, 2016;Meyer, 2019;Nasrin et al, 2018).…”

Section: Variables 321 Dependent Variablesmentioning

confidence: 99%

“…YLD can serve the function of proxy of FP of MFPs representing the nominal income earned from interest rates and fees charged by the MFPs on the loan portfolio outstanding (Abdullah & Quayes, 2016;Arrassen, 2017;Kulkarni, 2017;Meyer, 2019). YLDR is an the ex-ante proxy of interest rates that shows the total income from real interest rates and fees charged by the MFPs on the loan portfolio outstanding, used as measure of FP of MFPs (Abdullah & Quayes, 2016;Arrassen, 2017;Assefa et al, 2013;Robert Cull & Morduch, 2007;Kulkarni, 2017;Meyer, 2019)…”

Section: Variables 321 Dependent Variablesmentioning

confidence: 99%

“…Depth of outreach shows the socioeconomic level of the clients served and the breadth of outreach represents the number of poor served (Hermes & Lensink, 2007). The majority of previous studies had focused depth of outreach for the measurement of social performance while analyzing its effect on the financial performance of MFPs, like Meyer (2019), Abdullah and Quayes (2016), and Quayes (2012Quayes ( , 2015. According to Mia and Chandran (2016), it is the subjective choice of researcher to decide upon which proxies to for social outreach.…”

Section: Explanatory Variablesmentioning

confidence: 99%

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The Impact of Social Outreach on the Financial Performance of Microfinance Providers in Pakistan

2019

EJBM

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Microfinance, the tool for poverty alleviation had gone through a paradigm shift as a result of the wave of commercialization of microfinance providers. Increased focus to financial goals and the dreaded trade-off from the pursuance of social outreach goals could force microfinance service providers (MFPs) to the mission drift. To solve the entangled puzzle of mutuality between the social outreach and financial performance of MFPs in Pakistan, this study empirically analyses the impact of outreach on financial performance of MFPs in Pakistan by using a sample of 38 MFPs for the period of 1998-2014. Results suggest that there is significant and positive association between depth of outreach and financial performance. The empirical evidence signaled no trade-off between depth of outreach and financial performance. Results showed the achievement of dual mission for MFPs is possible, as the depth of outreach had a significant positive effect on the financial performance of MFPs in the context of Pakistan. Findings remain consistent by using alternative proxies of financial performance.

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Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2019

Contemporary Topics in Finance

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Microfinance institutions (MFIs) generally aim at improving the access of the poor to financial services while at the same time being financially sustainable. But what do we know about how MFIs reach and combine these two goals? We carry out a systematic review of close to 170 articles discussing the determinants of the financial and social performance of MFIs. The review shows that the most important determinants addressed in the literature are MFI characteristics (size, age, type of organization), their funding sources, the quality of organizational governance and the MFIs' external context such as macroeconomic, institutional and political conditions. The evidence on these issues is rather mixed.Moreover, the direction of the relationship between these drivers and MFI performance depends on the context, particularly the country-specific context. Finally, there is a lack of consensus in the literature on the measurement of financial and social performance. Due to the complexity of the concept, we argue that social performance should only be assessed by using a multidimensional perspective. This can be done either by applying recent and holistic social performance measures such as the SPI4, or at least by using a combination of proxies, such as outreach, gender and rural measures. Burzynska, K., & Berggren, O. (2015). The impact of social beliefs on microfinance performance.

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Do women borrowers augment financial performance of MFIs?

Cited by 69 publications

References 32 publications

Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia

Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia

The Impact of Social Outreach on the Financial Performance of Microfinance Providers in Pakistan

Determinants of the Performance of Microfinance Institutions: A Systematic Review

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