The Determinants of Micro Finance Institutions’ Decision to Receive a Social Rating: An Institutional and Resource-Dependence Perspective

We examine the determinants of MFIs’ social rating decisions according to institutional and resource dependency pressure factors. exploit a unique data set containing 221 MFIs resulting in 767-year observations, obtained from both mixed market agencies (Planet, MicroFinanza, Microrate agencies). Our was collected for rated non-rated between years 2006 2018, six major less-developed regions world. study contributes CSR literature microfinance as decision be acts like signal. research shows that tighter rule law less inclined are seek rating. In addition, we borrow resource-dependence perspective demonstrate proxies (in)dependence such for-profit status, mature stage, subsidization negatively associated with obtention Overall, world, when operate strongly regulated environment have strong position (financial mission-wise), respect investors, they willing obtain