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Are Regulatory Microfinance Institutions of India Better Off than Non-regulatory Ones? A Comparison of Performance and Sustainability

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  • A. P. Pati

Abstract

In this article, an empirical study has been made to compare the social (outreach related) and financial (cost, profit and sustainability related) performances of regulated microfinance institutions (MFIs) with non-regulated MFIs and to identify the causal variables of such performances. With the help of a panel data set of the last five years, that is, from 2008–2009 to 2012–2013 it is found that the preference of Indian MFIs for regulatory structure has not culminated with better performance. Through the causal study, which is performed through the fixed-effect regression model, no impact of regulation is visible. Among the important explaining variables capital structure, the size of operating expenditure and quality of assets are found to be prominently responsible for outreach and sustainability of Indian MFIs.

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  • A. P. Pati, 2015. "Are Regulatory Microfinance Institutions of India Better Off than Non-regulatory Ones? A Comparison of Performance and Sustainability," Paradigm, , vol. 19(1), pages 21-36, June.
    • Handle: RePEc:sae:padigm:v:19:y:2015:i:1:p:21-36
    DOI: 10.1177/0971890715585199
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    References listed on IDEAS

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    Cited by:

    1. Biswajit Ghose & S. Joplinshisha Paliar & Liha Mena, 2018. "Does Legal Status Affect Performance of Microfinance Institutions?: Empirical Evidence from India," Vision, , vol. 22(3), pages 316-328, September.
    2. Khawla Chedad & Ayoub Boukir & Sanae Chaabi & Samir Aguenaou & Jawad Abrache, 2022. "Financial Performance and Sustainability of Microfinance Institutions in Morocco: A Structural Equation Model," International Journal of Economics and Financial Issues, Econjournals, vol. 12(1), pages 51-57.
    3. Shamsuddin Ahamad & Hamdan Amer Ali Al-Jaifi & Kizito Uyi Ehigiamusoe, 2023. "Impact of Intellectual Capital on Microfinance Institutions’ Efficiency: the Moderating Role of External Governance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 691-717, June.

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