The bidirectional relationship between MFIs’ financial and social performance: Sustainability and outreach perspective

Khalaf, Lubna; Kouki, Rimel; Algebaly, Esam-Aldin M.

doi:10.1080/23322039.2023.2173123

Cited by 4 publications

(3 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the model’s overall goodness of fit, the model significantly described the variation in the sustainability (financial performance) of Ethiopian MFIs. The result indicated that the depth and NAB have a positive significant impact on the financial performance for all models, signifying that MFIs in Ethiopia which have a higher number of current borrowers and average loan size, lead to achieving financial performance or sustainability and the result is consistent with Beisland et al (2020), Bhayana and Sharma (2022), Khalaf et al (2023), and different result is found with Rizkiah (2019) revealed that social outreach has a negative significant impact on financial performance. Besides, female borrowers who are a percentage of total borrowers have a positive significant impact on OSS with the simultaneous estimation model, suggesting that, increasing the number of female borrowers enables Ethiopian MFIs to cover operational costs as women would go for smaller loans with proper management (Churchill, 2018) and as a result of their higher loan repayment rate than men (Fadikpe et al , 2022).…”

Section: Regression Analysis and Discussion Of Resultsmentioning

confidence: 54%

“…As stated by Fadikpe et al (2022), expanding the client base enhanced sustainability and the proportion of female clients has a positive effect on MFIs' sustainability. Khalaf et al (2023) and Bhayana and Sharma (2022) argued that social performance has a positive relationship with sustainability. In addition, Singh (2023), Beisland et al (2020) and Yeshi (2015) argue that the social outreach of MFIs is significantly related to sustainability.…”

Section: Empirical Literature Review and Hypotheses Formulationmentioning

confidence: 99%

See 1 more Smart Citation

Social versus financial performance: evidence from microfinance institutions in Ethiopia

Kumar,

Asmare

2024

SRJ

View full text Add to dashboard Cite

Purpose Today, the sustainability and outreach of microfinance institutions (MFIs) are crucial to the success of microfinance and the sector’s potential to make a lasting impact. The ability of MFIs to operate financially well without sacrificing their social goals has come under scrutiny. This study aims to identify the kind of relationships between the two objectives of MFIs in Ethiopia. Design/methodology/approach This study investigated the association between the outreach and financial sustainability of Ethiopian MFIs from the years 2012 to 2021 using a balanced set of panel data. The study used secondary data and employed a descriptive research design and a quantitative research approach. To this end, random and fixed effects estimation models, as well as three-stage least squares, with the model of seemingly unrelated regression (SUR) are used. Findings According to the study, outreach performance enables MFIs to achieve sustainability/financial performance. On the other side, MFI that are financially sound improve social performance. There was therefore no trade-off between the two objectives. Originality/value As Ethiopia’s microfinance sector shifts away from government and non-government backing and toward commercialization, such research is crucial. This aspect of the Ethiopian microfinance industry has gotten little consideration in research. The SUR model was used in the study together with random and fixed effect estimators, and the most reliable estimation result was chosen based on the necessary tests.

show abstract

Section: Regression Analysis and Discussion Of Resultsmentioning

confidence: 54%

Section: Empirical Literature Review and Hypotheses Formulationmentioning

confidence: 99%

Social versus financial performance: evidence from microfinance institutions in Ethiopia

Kumar,

Asmare

2024

SRJ

View full text Add to dashboard Cite

show abstract

“…By prioritizing female outreach, MFIs connect with a group that has frequently been underserved, if not marginalized, in traditional financial institutions. This emphasis recognizes the distinct financial demands, goals, and limits that women may have, spurring the development of personalized financial goods and services (Khalaf et al, 2023). Women's empowerment through financial inclusion is one significant component leading to the observed relation.…”

Section: Solution-3 and 4 (S3 And S4)mentioning

confidence: 99%

Fostering Inclusive Growth: Exploring Gender Dynamics and Loan Sizes in Microfinance Institutions

Muhammad Ahmed,

Tahir,

Gulzar Ahmad

2023

ASSAP

View full text Add to dashboard Cite

The financial landscape has witnessed a growing focus on the role of women in driving economic development and achieving sustainable development goals (SDGs). The global pursuit of the SDGs, notably in gender equality and women's empowerment, has highlighted the importance of women's economic involvement. Recognizing the critical role that microfinance institutions (MFIs) play in encouraging inclusive economic growth and poverty alleviation, this study investigated how strategic gender dynamics within MFIs affect loan size. The study addresses a critical gap in understanding the gender dynamics within MFIs concerning women's presence at various echelon positions and their involvement, notably evaluating their impact on loan size. The study examines a meticulously curated dataset consisting of 1295 MFIs from 102 countries by analyzing selected gender dynamics such as women's echelon position, women's focus, gender diversity, target market and outreach. The study's findings, distilled into four configurational solutions, gave fascinating insights into the circumstances under which numerous factors interact to determine loan size in MFIs. Core conditions such as target market, women focus and female outreach were identified as critical drivers of loan size outcomes in various configurations. The implications of women's focus were particularly noteworthy, indicating that a concerted effort to prioritize women's engagement can significantly contribute to increased loan size in MFIs. The findings of this study serve as a foundation for establishing a more equitable and prosperous future through empowered women and effective microfinance practices on a global scale.

show abstract

Advancing human and social dimensions in balanced scorecards for GCC corporations: a nuanced approach

Awadallah

2024

Cogent Economics & Finance

View full text Add to dashboard Cite

The bidirectional relationship between MFIs’ financial and social performance: Sustainability and outreach perspective

Cited by 4 publications

References 49 publications

Social versus financial performance: evidence from microfinance institutions in Ethiopia

Social versus financial performance: evidence from microfinance institutions in Ethiopia

Fostering Inclusive Growth: Exploring Gender Dynamics and Loan Sizes in Microfinance Institutions

Advancing human and social dimensions in balanced scorecards for GCC corporations: a nuanced approach

Contact Info

Product

Resources

About