Employee turnover and the credit risk of microfinance institutions (MFIs): International evidence

Hossain, Md. Imran; Mia, Aslam; Hooy, Chee–Wooi

doi:10.1016/j.bir.2023.04.001

Cited by 11 publications

(7 citation statements)

References 63 publications

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“…In the microfinance context, credit risk can be assessed using popular measures such as portfolio risk over 30 days (PAR30) and 90 days (PAR90). These measures denote the number of loans that have exceeded their due date by more than 30 and 90 days, respectively (Blanco-Oliver et al, 2021;Hossain et al, 2023;Tadele et al, 2021). Based on these two measures of credit risk, the following equations were developed:…”

Section: Econometric Model and Data Descriptionmentioning

confidence: 99%

“…Organizational-level variables encompass the size of MFIs measured by the natural logarithm of total assets (LNTA) (Chikalipah, 2018), with larger firms expected to develop more efficient risk control strategies compared to their smaller counterparts. Moreover, the debt-equity ratio (DTE), a measure of leverage (Hossain et al, 2023), can positively affect the credit risk of MFIs. The number of board members (LNNOBM), assessing board capacity (Boubacar, 2020), is expected to enhance risk management quality and, consequently, reduce credit risk.…”

Section: Econometric Model and Data Descriptionmentioning

confidence: 99%

“…Additionally, the deposit-to-loan ratio (DTL), a measure of liquidity (Hossain et al, 2023), enhances MFI solvency. A more solvent MFI is argued to be more inclined to provide loans, potentially elevating credit risk.…”

Section: Econometric Model and Data Descriptionmentioning

confidence: 99%

“…This research makes significant contributions in several key aspects. First and foremost, it addresses the looming threat posed to MFIs by the unstable (often rising) default rates (Hossain et al, 2023).…”

mentioning

confidence: 99%

“…Therefore, we have no other choice than rely on the duration of 2010-2018. Furthermore, to address potential outlier issues, we performed winsorization at the 1% and 99% levels, in line with the previous studies ofHossain et al (2023),Mia, Hossain, et al (2022),. Ultimately, our dataset comprises a total of 2904 firm-year observations.4 | DATA ANALYSIS4.1 | Descriptive statistics and pair-wise correlationTable2presents the descriptive statistics for all variables used in this study.…”

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confidence: 99%

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Is it worth having more female managers? A portfolio risk perspective from the global microfinance industry

Hossain,

Mia

2024

Bus Strat Dev

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Promoting gender diversity at different organizational levels remains one of the hotly debated issues in recent years. Motivated by the paucity of research in this area, our study aims to investigate the impact of female managers on the credit risk of microfinance institutions (MFIs). We have collected data from 1004 unique MFIs across 96 countries, covering the period of 2010 to 2018, using the World Bank Mix Market data catalog. The data were then analyzed using several conventional tools and techniques, including endogeneity‐corrected estimators. The findings revealed that the presence of female managers lowers the credit risk of MFIs. The result mostly remains consistent and robust across different techniques and proxies. Therefore, promoting gender diversity at the managerial level could promote the long‐term sustainability of MFIs.

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Section: Econometric Model and Data Descriptionmentioning

confidence: 99%