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The Impact of competition on the social performance of microfinance institutions in Cameroon

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  • Kadandji André

    (Saint Jerome Management Sciences and Business School (SJMB))

Abstract

The objective of this article is to analyze the effect of competition on the social performance of microfinance institutions in Cameroon. In order to do so, we employ the Structure-Conduct-Performance paradigm. For the empirical analysis we use panel data for 19 microfinance institutions extracted from MIX MARKET database for the period 2002 to 2012. We used the institution-centered approach for social performance. The method of generalized estimating equations allowed us to test the robustness of our results. Our results show that the Lerner index is positively and significantly related to the degree of social significance at the 5% threshold. Thus, increasing competition reduces the degree of outreach. In view of these results, it is important to regularly audit the social performance of MFIs in a competitive context such as that of Cameroon. Furthermore, it appears that for the improvement of the social framework, special monitoring is needed for large MFIs.

Suggested Citation

  • Kadandji André, 2022. "The Impact of competition on the social performance of microfinance institutions in Cameroon," Economics Bulletin, AccessEcon, vol. 42(3), pages 1381-1387.
    • Handle: RePEc:ebl:ecbull:eb-21-00140
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    References listed on IDEAS

    as
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    5. Kadandji Andre & Djekna Votsoma, 2018. "The Influence of Loan Portfolio Quality on Sound Banking in CEMAC: The Importance of Bank¡¯s Internal and External Environment," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(7), pages 136-136, July.
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    More about this item

    Keywords

    microfinance; competition; social performance; SCP paradigm; social reach;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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