The Determinants of the Financial Performance of Microfinance Institutions: Impact of the Global Financial Crisis

Daher, Lâma; Saout, Erwan Le

doi:10.1002/jsc.2002

Cited by 35 publications

(37 citation statements)

References 35 publications

(74 reference statements)

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“…Understanding the recent financial crisis' impact on microfinance has also attracted the attention of academics (Lensink, 2011;Wagner and Winkler, 2013;Daher and Le Saout, 2015). Lensink (2011) provides evidence that the financial crisis has had negative consequences on MFIs' performance related to profitability, growth and portfolio quality.…”

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confidence: 99%

“…Wagner and Winkler (2013) confirm the findings of Lensink (2011), adding that credit growth was even more severe for MFIs receiving funds from domestic and international financial markets. Finally, the article of Daher and Le Saout (2015) finds that the financial crisis has had a negative impact in terms of MFI profitability while noting that the more profitable MFIs have less outreach post-crisis. Taken together, I hypothesize:…”

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confidence: 99%

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A meta-analysis examining the nature of trade-offs in microfinance

Reichert

2018

Oxford Development Studies

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Increasingly, microfinance institutions must balance both social and financial objectives, the so-called double bottom line. A growing number of studies have investigated the ability of MFIs to achieve both objectives simultaneously. From an initial sample of 3,299 articles, I synthesize 274 empirical findings from 61 studies to perform a meta-analysis on the relationship between financial and social performance. Findings suggest that studies using the Mix Market database are less likely to confirm trade-offs while articles that use efficiency indicators, employ an economic frontier methodology or are published in development journals are more likely to confirm evidence of performance trade-offs. Abstract Increasingly, microfinance institutions must balance both social and financial objectives, the so-called double bottom line. A growing number of studies have investigated the ability of MFIs to achieve both objectives simultaneously. From an initial sample of 3,299 articles, I synthesize 274 empirical findings from 61 studies to perform a meta-analysis on the relationship between financial and social performance. Findings suggest that studies using the Mix Market database are less likely to confirm trade-offs while articles that use efficiency indicators, employ an economic frontier methodology or are published in development journals are more likely to confirm evidence of performance trade-offs.JEL CODES: C12, G21, L25, L31

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confidence: 99%

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confidence: 99%

A meta-analysis examining the nature of trade-offs in microfinance

Reichert

2018

Oxford Development Studies

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“…An alternative interpretation is expected to pay a high leverage and it is used often by companies, i.e. by these firms having financial problems, and thus, they may feel they have to uncover investments that quickly recover the initial investment (Daher & Saout, 2015). On the other hand, Block (2007) inferred that financial organizations can exercise indirect pressure on the analytical methods used by companies to make investment decisions.…”

Section: Determinants Of Capital Expenditure At Firm Levelmentioning

confidence: 99%

Sensitivity analysis for the determinants of investment appraisal

Ilyas¹,

Hussain²,

Hashmi³

et al. 2017

AUDITF

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“…For similar reasons that banks failed in Europe and North America, microfinance institutions (MFIs) that had been tapping into international finance markets were particularly vulnerable to the financial crisis (Constantinou and Ashta 2011; Daher and Le Saout 2015;Wagner 2012;Di Bella 2011;Wagner and Winkler 2013). But problems with bad micro-loans were exacerbated by the 2008 food price crisis, reflecting borrowers' position at the base of the pyramid.…”

Section: Box 2 the Gold Rush In Burkina Fasomentioning

confidence: 99%

“…There has been little analysis of the effects of the food crisis on microfinance, but a survey of 45 major MFIs in 2008 found that for more than half, the food spikes were increasing the proportion of portfolio-at-risk and adversely affecting loan portfolio, while one-third reported that default rates were up (Duflos and Gähwiler 2008). One lesson from the recent microfinance crisis has been the need for better inflation prediction, as high inflation changes assumptions about the future, and has the potential to affect repayment rates (Daher and Le Saout 2015;Gonzalez 2011;Lyman et al 2011). …”

Section: Box 2 the Gold Rush In Burkina Fasomentioning

confidence: 99%