IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-19-0217-8_6.html
   My bibliography  Save this book chapter

Innovations and the Financial Performance of Microfinance Institutions: A Global Evidence

In: Social Purpose, Commercialization, and Innovations in Microfinance

Author

Listed:
  • Md Aslam Mia

    (Universiti Sains Malaysia)

Abstract

To provide uninterrupted financial and non-financial services to the poorer people of the society, Microfinance Institutions (MFIs) need to achieve better financial performance in their operation. In this respect, this chapter explores the relationship between several innovations undertaken by the microfinance industry in recent years and its financial performance objectives. In so doing, we obtained an unbalanced panel data of 2,937 global MFIs, covering the period 2000–2018. Subsequently, the data were analyzed using conventional regression-based techniques (i.e., Pooled OLS and REM), while Generalized Method of Moments and Hausman-Taylor approach was employed to address the potential endogeneity. Our findings are somewhat heterogenous, with limited types of innovations exhibiting a proxy and technique-specific positive influence on the financial performance of MFIs. Notably, we observed that MFIs of certain legal status (eg., bank, rural bank, non-bank financial institutions and credit union/cooperative) showed higher operating and per borrower cost, albeit their increased susceptibility to mission drift compared to the NGO-MFIs.

Suggested Citation

  • Md Aslam Mia, 2022. "Innovations and the Financial Performance of Microfinance Institutions: A Global Evidence," Springer Books, in: Social Purpose, Commercialization, and Innovations in Microfinance, chapter 0, pages 121-145, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-0217-8_6
    DOI: 10.1007/978-981-19-0217-8_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:sprchp:978-981-19-0217-8_6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.