Funding Strategy and Performance of Microfinance Institutions: An Exploratory Study

Tchuigoua, Hubert Tchakoute; Durrieu, François; Kouao, Guy Serge

doi:10.1002/jsc.2116

Cited by 14 publications

(11 citation statements)

References 23 publications

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“…MFIs face huge demand for their services, in particular loans. To service the high demand for microloans we contend that MFIs need to shift their funding focus from donors to the capital markets (Gosh & Van Tassel, ; Tchuigoua et al, ). It is therefore relevant to search for factors influencing the MFIs’ ability to attract debt.…”

Section: Discussionmentioning

confidence: 99%

“…If the capital structure is not irrelevant, the determinants of capital structure become an important research question. However, prior studies do not provide conclusive evidence as to which are the determinants of a firm's capital structure (Tchuigoua et al, ). Barton and Gordon ( ) posit that managerial choices, in general, can help to explain the level of debt in the capital structure.…”

Section: Literature Review and Hypothesesmentioning

confidence: 98%

“…While much research efforts have been put into understanding whether poor people benefit from accessing financial services, less is known about the management and finance—and the interaction of the two—of microfinance institutions (MFIs). This is unfortunate because the management of MFIs will affect capital availability for the microbanking industry, and the capital availability potentially has considerable and direct influence on the industry's customer impact (Tchuigoua, Durrieu, & Kouao, ). The little MFI‐management research available finds evidence of a significant chief executive officer (CEO) influence on MFI performance (Galema, Lensink, & Mersland, ; Randøy, Strøm, & Mersland, ).…”

Section: Introductionmentioning

confidence: 99%

“…Overall, MFIs need debt to grow their portfolios to fulfill their missions of expanding their services to more poor clients; “Funding is crucial to improving financial inclusion” (Tchuigoua et al, , p. 133). The question we seek to answer in this article is whether the tenure of the CEO influences the MFI's intake of debt.…”

Section: Introductionmentioning

confidence: 99%

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Capital structure and CEO tenure in microfinance institutions

2018

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here is a osi e associa on between O tenure and the debt ro or on o micro nance ins tu ons. icro nance ins tu ons need im ro ed access to debt ca ital to co er a hu e and increasin world demand or micro nance ser ices. ore e erienced Os may be more ali ned with the micro nance ins tu on s mission, and they may ha e a be er understandin o the business model o micro nance. oreo er, ca ital ro iders may re uire a ro en trac record within the ins tu on to su ly undin . | While much research e orts ha e been ut into understandin whether oor eo le bene t rom accessin nancial ser ices, less 3 School o usiness and Law, ni ersity o der, orway rr s c Lei tle eisland, School o usiness and Law, ni ersity o der, Ser ice o 422, 4 04 ris ansand, orway. mail: lei .a.beisland uia.no * J. .L. classi ca on codes: 21, 32, 12 Strategic Change. 2018;27(4):329-337.wileyonlinelibrary.com/journal/jsc

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Section: Discussionmentioning

confidence: 99%

Section: Literature Review and Hypothesesmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Capital structure and CEO tenure in microfinance institutions

2018

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“…An increase in the use of market debt for financing MFIs leads to lower social performance and lower financial inclusion (Kanyurhi, 2017). Subsidized MFIs often charge lower interest rates (Tchuigoua, Durrieu, & Kouao, 2017). Researchers also investigate if equity can help balance the stress of microfinance organizations, notably private equity (Ashta & Hudon, 2012; Hannam & Cheng, 2012), public equity (Daher & Saout, 2017), and microequity that could be both offline (Estapé‐Dubreuil, Ashta, & Hédou, 2012) or online (Kim & Moor, 2017).…”

Section: Research Directionsmentioning

confidence: 99%

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

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Lifting the poor from poverty through financial and social inclusion is the ultimate target and raison d'etre of microfinance. As the most recent literature has recognized, microfinance institutions have economically worked well in operating microcredit, but the aim of raising the living standard of their indigent clients has not been generally met. The expected encouragement of entrepreneurship from microcredit is still not detected in the empirical data, let alone women's social integration in working activities. The articles collected in this thematic issue bring new empirical elements of discussion pointing to many aspects of the social divides and the inequalities that plague the emerging countries. This overview article recalls the main questions that are still open and the framework of topics discussed in this thematic issue.

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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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Funding Strategy and Performance of Microfinance Institutions: An Exploratory Study

Abstract: MFI social and financial performance differs depending on their funding behavior.

Cited by 14 publications

References 23 publications

Capital structure and CEO tenure in microfinance institutions

Capital structure and CEO tenure in microfinance institutions

Microfinance and financial inclusion: Challenges and opportunities

Determinants of the Performance of Microfinance Institutions: A Systematic Review

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