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Performance of Asian MFIs: The Role of Capital Structure and Macro-Institutional Quality (Article)

Author

Listed:
  • Adnan Habib

    (North South University (NSU), Bangladesh.)

  • Shahriar Kabir

    (Independent University Bangladesh (IUB), Bangladesh.)

Abstract

We draw on the capital structure theory and examine whether Modigliani & Miller’s capital leveraging ideology improves the performance of microfinance institutions (MFIs) under different macro-institutional quality. We develop and test a framework of the combined effect of capital structure and macro-institutional quality on both financial and social performance, which is a novel contribution. We collect data on 75 MFIs in Asia from 2009 to 2018 and applied Hausman-Taylor test.

Suggested Citation

  • Adnan Habib & Shahriar Kabir, 2023. "Performance of Asian MFIs: The Role of Capital Structure and Macro-Institutional Quality (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(1), pages 15-40.
    • Handle: RePEc:pid:journl:v:62:y:2023:i:1:p:15-40
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    References listed on IDEAS

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