Dynamic incentives, where incentives to repay are generated by granting access to future loans, is one of the methodologies used by microfinance institutions (MFIs). In this paper, I present a model of dynamic incentives where lenders are uncertain over how much borrowers value future loans. Loan terms are determined endogenously, and loans become more favorable as the probability of default be...

This study examines the impact of intellectual capital (IC) and its components (human capital, structural employed) on microfinance institutions’ (MFIs) financial social efficiency. It also determines moderating external governance relationship between IC MFIs’ employs Truncated regression model Data Envelopment Analysis (DEA), while Tobit Generalized Method Moments (GMM) were utilized to check...

The objective of this research was to explore, both theoretically and empirically, the ecological impacts of small-scale entrepreneurial ventures in developing countries. To this end, six microenterprises in rural southwestern Bangladesh established using green-microcredit strategies were evaluated in terms of goals, operational procedures, economic viability, social contributions, and impact o...

Table of Contents Foreword 1 1. Why use control groups in impact assessments of microfinance projects? 3 2. Biases of the control-group method and how to avoid them 7 2.1 Sample selection bias 7 2.2 Misspecification of underlying causal relationships 9 2.3 Motivational problems 10 3. Conclusions and recommendations 15 General recommendations 18 Recommendations for evaluators and donors 18 Recom...

Purpose This paper examines the effect of intellectual capital (IC) on financial sustainability microfinance institutions (MFIs). The study is motivated by increased calls for MFIs to be self-sustainable and growing importance knowledge-based assets as contributors competitive advantage sustained performance. Design/methodology/approach With a global sample 444 data 2013–2018, which yielded 2,6...

This research aims to examine the mediating role of microfinance governance in relationship between financial literacy and sustainability. The used purposive sampling method collect data from Women Farmers Group (WFG) “Tapa Walla Badi” Mbatakapidu village, East Sumba, Indonesia. survey was conducted November through December 2021 with valid sample for analysis 200 questionnaires. Partial Least ...

The initial promise of microcredit, including such accolades as the 2006 Nobel Peace Prize, has given way to intense debate about if and when it is an effective development tool. Interest rates are central to this debate. Policymakers and donors promoting financial development have variously encouraged microfinance institutions (MFIs) to cut rates to expand access (under the assumption of elast...

This paper studies the determinants of financial performance (return on assets, ROA) 18 Argentine Microfinance Institutions (MFIs) from 2002 to 2018. We apply random forest algorithm predict ROA MFIs, introducing two social variables capture depth outreach such as female ratio and average size loan portfolio divided by GDP per capita. also consider five other main explanatory variables, size, e...

Microfinance institution plays a crucial role in economic development and financial inclusion. Financial sustainability is the key dimension to microfinance institutions growth. Which further indicate importance of which is. Therefore, present study investigated effect leverage on MFI sustainability. The specific objective was establish MFIs. guided by agency theory life-cycle theory. adopted a...

Managers of microfinance institutions (MFIs) typically lack the information required to optimize loan contract terms and marketing strategies. We outline a replicable randomized-control methodology that addresses MFI contracting and marketing strategies directly, and we present evidence from the first implementation of this methodology. We estimate consumer loan demand sensitivities with respec...