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New approaches to measure the social performance of microfinance institutions (MFIs)

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  • Bibi, Uzma
  • Balli, Hatice Ozer
  • Matthews, Claire D.
  • Tripe, David W.L.

Abstract

Outreach is a central purpose of microfinance institutions in providing access to quality financial services for large numbers of poor people. This paper critically reviews outreach indicators for microfinance institutions from prior research using a South Asian panel data set covering the period 1998 to 2013. We introduce two new ways of measuring the social objectives of MFIs, reflecting market shares, for breadth and depth of outreach. The results show that these new outreach indicators provide a better explanation of social performance of MFIs than those commonly used in prior research.

Suggested Citation

  • Bibi, Uzma & Balli, Hatice Ozer & Matthews, Claire D. & Tripe, David W.L., 2018. "New approaches to measure the social performance of microfinance institutions (MFIs)," International Review of Economics & Finance, Elsevier, vol. 53(C), pages 88-97.
  • Handle: RePEc:eee:reveco:v:53:y:2018:i:c:p:88-97
    DOI: 10.1016/j.iref.2017.10.010
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    1. Wei Xu & Hongyong Fu & Huanpeng Liu, 2019. "Evaluating the Sustainability of Microfinance Institutions Considering Macro-Environmental Factors: A Cross-Country Study," Sustainability, MDPI, Open Access Journal, vol. 11(21), pages 1-22, October.
    2. Adusei, Michael & Obeng, Emmanuella Yaa Takyiwah, 2019. "Board gender diversity and the capital structure of microfinance institutions: A global analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 71(C), pages 258-269.

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    More about this item

    Keywords

    Microfinance institutions; Social performance; Performance ratios;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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