IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789814295666_0019.html
   My bibliography  Save this book chapter

Social and Financial Efficiency of Microfinance Institutions

In: The Handbook Of Microfinance

Author

Listed:
  • Carlos Serrano-Cinca

    (Universidad de Zaragoza, Spain)

  • Begoña Gutiérrez-Nieto

    (Universidad de Zaragoza and CERMi, Spain)

  • Cecilio Mar Molinero

    (University of Kent, France)

Abstract

The performance of Microfinance Institutions (MFIs) is examined in this paper. MFIs have a double aspect: financial and not-for-profit. It is, therefore, appropriate to assess their performance by means, not only of financial ratios, but also by means of social indicators. We propose the use of Data Envelopment Analysis (DEA) as a way of assessing the relative efficiency with which an institution uses inputs in order to generate outputs. The outputs can be either financial or social. We also study the relationship between financial and social efficiency, and between these and other indicators. We have used Principal Components Analysis, Cluster Analysis, and Multivariate Regression as analysis tools. The results show that it is possible to explain the performance of a MFI by means of a reduced set of variables. The paper ends by discussing the need to extend the use of social efficiency indicators, as we consider that they are appropriate in the assessment of the performance of MFIs.

Suggested Citation

  • Carlos Serrano-Cinca & Begoña Gutiérrez-Nieto & Cecilio Mar Molinero, 2011. "Social and Financial Efficiency of Microfinance Institutions," World Scientific Book Chapters, in: Beatriz Armendáriz & Marc Labie (ed.), The Handbook Of Microfinance, chapter 19, pages 397-418, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814295666_0019
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789814295666_0019
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789814295666_0019
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simon Cornée & Gervais Thenet, 2016. "Efficience des institutions de microfinance en Bolivie et au Pérou:une approche data envelopment analysis en deux étapes," Revue Finance Contrôle Stratégie, revues.org, vol. 19(1), pages 65-91, March.
    2. Maxime LEBOVICS & Niels HERMES & Marek HUDON, 2016. "Are Financial And Social Efficiency Mutually Exclusive? A Case Study Of Vietnamese Microfinance Institutions," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 55-77, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789814295666_0019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.