IDEAS home Printed from https://ideas.repec.org/a/eme/ajarpp/ajar-11-2020-0122.html
   My bibliography  Save this article

Revenue diversification and financial sustainability of microfinance institutions

Author

Listed:
  • Peter Nderitu Githaiga

Abstract

Purpose - This paper aims to investigate whether revenue diversification affects the financial sustainability of microfinance institutions (MFIs). Design/methodology/approach - The study uses a worldwide panel data set of 443 MFIs in 108 countries for the period 2013–2018 and two-step system Generalized Method of Moments estimation model. Findings - The study finds that revenue diversification has a significant and positive effect on the financial sustainability of MFIs. Practical implications - The findings of this study actually offer important managerial and policy lessons on MFIs’ financial sustainability. Microfinance managers and policymakers should consider revenue diversification as a strategy through which MFIs can attain financial sustainability instead of overreliance on donations and government subsidies Originality/value - Unlike previous studies that examined revenue diversification in the context of banking firms, this study contributes to literature by examining the impact of revenue diversification of the financial sustainability of MFIs.

Suggested Citation

  • Peter Nderitu Githaiga, 2021. "Revenue diversification and financial sustainability of microfinance institutions," Asian Journal of Accounting Research, Emerald Group Publishing Limited, vol. 7(1), pages 31-43, May.
    • Handle: RePEc:eme:ajarpp:ajar-11-2020-0122
    DOI: 10.1108/AJAR-11-2020-0122
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJAR-11-2020-0122/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJAR-11-2020-0122/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/AJAR-11-2020-0122?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Microfinance; Revenue diversification; Financial sustainability; G21; L31;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ajarpp:ajar-11-2020-0122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.