Capital structure and financial sustainability: stakes of microfinance institutions in Bamenda, Cameroon

Abstract This research assesses the effect of capital structure on sustainability Microfinance Institutions (MFIs) in Bamenda, Cameroon. We use panel data obtained from audited annual financial statements fifteen (15) MFIs, comprising both member- and shareholder-owned MFIs Cameroon 2014 to 2020, an ex-post facto causal design. Debt, equity, grants, retained earnings are used capture structure, while Operational Self-Sufficiency is as a proxy for sustainability. The Generalised Least Squares quantile-on-quantile techniques analysis. Our findings indicate statistically significant negative relationship between debt, grants positive found MFIs. A positive, though insignificant equity or share MFI results robust upon consideration different quantiles. Based findings, should rely more be financially sustainable. additionally provide evidence relating shortcoming financing development initiatives.