Applying wrapper-based variable selection techniques to predict MFIs profitability: evidence from Peru

نویسندگان

چکیده

In this paper, we analyse the main factors explaining profitability (ROA) of Microfinance Institutions (MFIs) in Peru from 2011 to 2107. We apply three wrapper techniques asample 168 Peruvians MFIs and 69 attributes obtained MIX Market database. After running algorithms M5?, knearest neighbours (KNN) Random Forest, find that M5? algorithm provides best fit for predicting ROA. Particularly, key variable regression tree is percentage expenses over assets and, depending on its value, it followed by net income after taxes before donations, or profit margins.

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ژورنال

عنوان ژورنال: Journal of Development Effectiveness

سال: 2021

ISSN: ['1943-9342', '1943-9407']

DOI: https://doi.org/10.1080/19439342.2021.1884119