Overconfidence and credit risk-taking in microfinance institutions: a cross-regional analysis

Fersi, Marwa; Boujelbène, Mouna

doi:10.1108/ijoa-11-2020-2510

Cited by 8 publications

(4 citation statements)

References 66 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…First, we observed that the size of MFIs has a significant negative effect on credit risk at the 1% level of significance. This finding is consistent with previous studies by Zamore et al (2019), Fersi and Boujelbène (2021), and Blanco‐Oliver et al (2021). Larger MFIs appear to have a competitive advantage in mitigating credit risk, as they can allocate more resources to risk supervision and monitoring.…”

Section: Discussionsupporting

confidence: 94%

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

Hossain,

Mia

2024

Bus Strat Dev

View full text Add to dashboard Cite

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.

show abstract

Section: Discussionsupporting

confidence: 94%

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

Hossain,

Mia

2024

Bus Strat Dev

View full text Add to dashboard Cite

show abstract

“…Managers can analyze financing above 100 million and above, but not necessarily staff can analyze the financing. Fersi and Boujelbène (2021) found overconfidence proxies have revealed negative repercussions on risk-exposures for both MFIs on average, as seen by high loan growth, low-interest margin, and loan loss provision. Overconfidence among loan officers is associated with a higher risktaking choice and, as a result, a lower loan portfolio quality.…”

Section: Risk Of Bmt Human Resources Capabilitymentioning

confidence: 89%

Comparative Analysis of Murabahah and Mudharabah Financing Risk from Islamic Microfinance Institutions Perspective

Alam

Sukmana²,

Fianto³

et al. 2022

JAM

View full text Add to dashboard Cite

The most frequently used financing contracts in Islamic financial institutions are murabahah and mudharabah. This study aims to reveal the phenomenon in the field about the description of the risk comparison between murabahah financing and mudharabah financing from the BMT side. This study uses descriptive qualitative research methods through data collection methods with in-depth interviews with nine respondents who have experience handling the risks of murabahah financing and mudharabah financing at BMT. This study shows that the risk of mudharabah financing is greater than the risk of murabahah financing. In practice, mudharabah financing tends to be relatively high due to asymmetric information and moral hazard. The inherent risk in murabahah financing is the risk of member default due to default or member negligence in returning installments. This study also identifies risk factors such as trust risk and sharia legal risk for murabahah financing with wakalah contracts. This study shows that BMT applies the precautionary principle and is appropriate to maintain the institution's health to minimize the risks that occur. This research is expected to be a reference in managing the risk of murabahah financing and mudharabah financing with innovative strategies. The BMT Islamic Microfinance Institution needs to stimulate and educate to reduce the risk of mudharabah financing so that it can become a top priority for financing.

show abstract

“…Además, no se registró ningún aumento en su capital social. Este fenómeno adquirió una relevancia considerable para el sector real, ya que facilitó la mejora de la liquidez y el fortalecimiento comercial de la entidad, sin la necesidad de acudir a terceros o de generar pasivos en la empresa como lo confirma (Fersi & Boujelbène, 2017) Fuente: Elaboración propia.…”

Section: Períodounclassified

Efectos de la titulización de cartera de crédito en la estructura de capital: un caso de estudio

Hurtado García,

Reyes Armas,

Torres Briones

et al. 2023

rgn

View full text Add to dashboard Cite

El problema identificado en las cooperativas financieras es la necesidad de aumentar el capital de estas cooperativas mediante financiamiento externo, ante ello, la titulización es una opción mínimamente explorada para mejorar la liquidez. El objetivo del estudio es proponer un proceso de titulización para la cartera de crédito hipotecario de la Cooperativa de Ahorro y Crédito San Francisco Ltda., y analizar su impacto en la estructura de capital de la cooperativa. El método aplicado es cuantitativo, basado en un análisis financiero que incluye el uso de la técnica estadística de análisis factorial en el período 2017-2021. Los hallazgos indican que la titulización de la cartera de créditos hipotecarios tiene un impacto positivo en la estructura de capital de la cooperativa. Se observó una mejora en indicadores como liquidez, rentabilidad y Valor Económico Agregado (EVA), tanto en situaciones posteriores a la titulización. La conclusión del estudio es que la titulización efectivamente induce cambios positivos en la estructura de capital de las cooperativas de ahorro y crédito. Esto se refleja en mejoras en la capacidad de respuesta financiera y la competitividad en el mercado, al ofrecerle una alternativa de financiamiento eficiente sin necesidad de generar pasivos adicionales para la institución.

show abstract

Overconfidence and credit risk-taking in microfinance institutions: a cross-regional analysis

Cited by 8 publications

References 66 publications

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

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

Comparative Analysis of Murabahah and Mudharabah Financing Risk from Islamic Microfinance Institutions Perspective

Efectos de la titulización de cartera de crédito en la estructura de capital: un caso de estudio

Contact Info

Product

Resources

About