Dissertations / Theses on the topic 'Variables: microfinance institutions; microfinance; performance'

Mestrado em Contabilidade, Fiscalidade e Finanças Empresariais
Este trabalho intitulado a "O Desempenho das Instituições de Microfinanças: Uma Análise Empírica Transnacional (1996-2009)" foi motivado por duas razões, primeiro, fruto do contacto com a parte operacional da agência Aga Khan para as Microfinanças (AKAM) em Moçambique, e pela oportunidade de realizar o trabalho final de mestrado nesta área financeira específica. As microfinanças integram projectos de desenvolvimento e de inclusão financeira para as pessoas que por diversas razões não têm acesso a serviços financeiros convencionais. Inúmeros estudos foram já realizados sobre o impacto das microfinanças como estratégia de desenvolvimento, bem como sobre a sustentabilidade destas instituições. Este estudo tem por objectivo avaliar e aprofundar o impacto de determinadas variáveis chave no desempenho das instituições de microfinanças (IMF), como sejam: macroeconómicas; institucionais; regulamentares; políticas; condições locais; e características geográficas e humanas do país. Através da revisão de literatura pretende-se, ainda, testar empiricamente algumas teorias, isto é: se um melhor funcionamento das IMF está associado a contextos economicamente mais adversos, pela maior permanência destas nestes ambientes; ou se as microfinanças funcionam como uma estratégia de desenvolvimento que precede a industrialização dos países; ou, ainda, se a performance das IMF tende a melhorar com o tempo. Utilizaram-se indicadores financeiros de sustentabilidade, de eficiência e de incumprimento para avaliar o desempenho das IMF com recurso a modelos econométricos e dados de painel. A amostra foi constituída por IMF distribuídas por diversos países do mundo, com diferentes estatutos (bancos, cooperativas, bancos rurais, NGO, NBFI) e maturidades. Após se efectuarem correcções de maneira a tornar os resultados econometricamente mais robustos, estes, para a maioria das variáveis externas, e não controláveis pelas IMF aqui consideradas, não têm impacto estatisticamente significativo nos indicadores de desempenho das instituições. Contudo, os resultados apontam para um impacto positivo e estatisticamente significativo entre o rendimento per capita do país e o rácio de créditos em mora, e para um impacto negativo, e igualmente significativo, entre o rendimento per capita do período anterior e o rácio de write-off. Paralelamente, o aumento do sector formal está associado a uma melhoria na qualidade do portfolio (reflectido no sinal obtido para o estimador da variável participação da força de trabalho no rácio de créditos em mora) das instituições, enquanto que, uma maior fracção da indústria no PIB está associada a piores rácios de write-off. A inflação é outra das variáveis relevantes com impacto positivo e estatisticamente significativo no indicador de eficiência - custo por cliente. Por último, comprova-se que os anos de experiência têm um efeito positivo mas marginalmente decrescente na sustentabilidade das IMF.
This research is entitled as "Microfinance Institutions Performance: an Inter-Regional Empirical Analysis (1996-2009)" the inspiration was a consequence of a field visit to the work inside Aga Khan Agency for Microfinance (AKAM) in Mozambique, and the opportunity to finalize the Masters degree in this specific social area. Microfinance is a development and financial inclusion strategy for non-bankable people that, because of different reasons, do not have access to traditional financial services. Several studies have already been conducted, focused on poverty alleviation and the social impact of microfinance (outreach of microfinance), as well as, on the challenges of a microfinance institutions (MFI) to reach financial sustainability. This study aims to evaluate in more depth the impact of different key-variables on IMF performance, namely: macroeconomic; institutional framework; regulation; political; local conditions; geographic and human characteristics of the country. Based on literature review this study also intends to empirically test some theoretical ideas, for example: microfinance is more developed in economic unstable areas due to a historical presence in these contexts; and microfinance as a development strategy that preceded industrialization ofthe countries; or even iftime tends to improve MFI performance. Econometric models and panel data regressions were used to assess the IMF performance in terms of sustainability, efficiency and default. The MFI dataset is distributed for different countries around the world, with different legal status (bank, cooperative/credit union, NGO and non-bank financial institutions) and different age/maturities. After using statistical techniques in order to increase the econometric robustness of the results, overall estimates show no statistical significant relationship between most external and non controlled variables studied on the performance indicators of IMF. However, the results showed a positive statistical significant impact of the current per capita income on at-risk ratio, and a negative significant impact of the previous year's per capita income on write-off ratio. Furthermore, an increase in the formal labor market is associated with a better portfolio quality (reflected by at-risk ratio coefficient on the workforce participation rate) of the institutions, whereas a larger share of manufacturing is associated with a higher write-off ratio. Inflation is another important variable with a positive and significant impact on efficiency indicators - cost per borrower. Finally, the results prove that MFI's tend to perform better initially and then taper off.

Microfinance is regarded as a financial development tool used in fighting poverty by providing the poor with financial services such as microloans, savings, insurance and money transfers thereby gradually lifting them out of poverty. Improving the performance of Microfinance Institutions (MFIs) makes them more capable of better serving more poor people, contributing to the development and enhancement of their economies and improving the welfare of the poor. It is therefore of great importance to study the performance of MFIs from different aspects in order to understand how they operate, what causes their success/failure, and try to find ways to enhance MFI performance to get the most possible benefit out of them. This thesis consists of three interconnected studies, each of which addresses the performance of MFIs from a different aspect. The first study examines the effect of the external environment on MFI performance worldwide in order to identify the context that is best suitable for MFI success, with a special emphasis on the MENA region. The second study investigates the causal relationship between microfinance and formal banking sector development in order to help improve the performance of MFIs with the possible help of the banking sector. The third study tests whether a trade-off exists between the two most pursued goals by MFIs: profitability and outreach in order to help MFIs find a way to achieve both goals simultaneously. A balanced panel dataset of 124 MFIs from 45 countries worldwide for the period 2004-2011 is used in conducting the three studies by applying multiple linear regression models and PVAR model using GMM. Results reveal that the external environment surrounding an MFI significantly influences MFI performance which helps in explaining the uneven performance of MFIs worldwide. It is also concluded that MFIs in the MENA region are the most profitable on average compared to MFIs in other regions which is mainly driven by GDP per capita, whereas South Asian MFIs tend to outperform MFIs in the MENA region when it comes to outreach. Additionally, it is concluded that MFI sustainability and banking sector development do not Granger cause each other, but MFI outreach tends to Granger cause formal banking sector development. Finally, no evidence of trade-off between MFI profitability and outreach is found except when the effect of profitability on outreach is disaggregated by MFI type.

This thesis investigates the effects of micro-saving on the performance of microfinance institutions (MFIs) using unbalanced panels that straddle the period 2000-2012. This issue is also examined in a country-specific case study of Vietnam. There are four important findings. First, we found that serving more voluntary savers is costly and curtails depth of microfinance outreach. Second, micro-savings, in terms of the total deposits and the number of deposit accounts per staff member have a positive and significant impact on financial sustainability, cost-efficiency and breadth of outreach of MFIs. Third, a trade-off between financial sustainability and depth of outreach was found for deposit-taking MFIs, compared with MFIs that do not offer micro-savings financial products. Fourth, the findings from the cross-country studies are consistent with the findings from Vietnam. Overall, these findings have important implications for policy makers, microfinance practitioners and researchers.

Cette recherche examine le lien entre la Responsabilité Sociale d’Enterprise (RSE) des Institutions de Microfinance (IMFs) et les investisseurs étrangers (F.Is) dans le contexte où la micro finance commercialisée a un double objectif (DBL). Le cadre théorique et conceptuel de cette étude comprend la théorie de l'agence, la théorie des parties prenantes, la théorie de la dépendance aux ressources et le concept d'Investissement Socialement Responsable (ISR). L'étude empirique est basée sur un processus en deux étapes, une première étude qualitative exploratoire réalisée à travers des entretiens semi-directif avec 9 gestionnaires de fonds (ISR) afin de bien comprendre le sujet et d'enrichir les théories et les concepts. La deuxième étape consiste en une analyse quantitative à l'aide des modèles des moindres carrés ordinaires (OLS) et de la régression logistique en utilisant les données de 615 IMF pour l'année 2012 pour vérifier le lien entre les F.Is et la RSE et si la performance financière joue un rôle de médiateur ou de modérateur. Pour la première fois en microfinance, une définition globale / multi dimensionnelle de la RSE est utilisée et des indicateurs calculés sur la base de cela. Les résultats montrent que la RSE est un facteur clé dans les décisions d'investissement de F.Is et il montre un effet de médiation de la performance financière sur la relation entre la RSE et F.Is. Afin d'assurer l'accès aux services financiers au bas de la pyramide, les IMFs ont besoin d'avoir accès aux investisseurs étrangers. Comme la RSE est prise en compte par les investisseurs dans leur décision d'investissement, les IMF doivent donc se concentrer sur la gestion et la présentation des activités pertinentes de RSE afin d'attirer et de satisfaire ces investisseurs
This research examines the link between Corporate Social Responsibility (CSR) of Microfinance Institutions (MFIs) and foreign investors (F.Is) in the context that commercialized Microfinance has double-bottom-line. The theoretical and conceptual framework for this study includes the agency theory, stakeholder’s theory, resource dependence theory and the concept of Socially Responsible Investment (SRI). The empirical study is based on a two-step process, an initial exploratory qualitative study carried out through semi-structured interviews with 9 fund managers (SRI) in order to understand well the topic and enrich the theories and concepts. The second step is a quantitative analysis through ordinary least squares (OLS) and logistic regression models using data of 615 MFIs for the year 2012 to verify the link between F.I and CSR and if financial performance plays a mediator or moderator role. For the first time in microfinance, a comprehensive/multi-dimensional definition of CSR is used and indicators calculated based on that. The results show that CSR is a key factor in investment decisions of F.Is and it shows a mediation effect of financial performance on the relationship between CSR and F.Is. In order to provide access to financial services at the bottom of the pyramid, MFIs need access to foreign investors. As CSR is taken into account by investors in their investment decision, therefore, MFIs need to focus on managing and reporting relevant CSR activities in order to attract and satisfy these investors

Critics argue that there has been a trend among Microfinance Institutions (MFI) to focus on profitability in order to stay financially sustainable. This made some institutions neglect the social mission of microfinancing. In this paper I intend to examine if empirical evidence supports this so called mission drift hypothesis as well as other claims in this context. Using the global panel data set of the MIX (Microfinance Information Exchange), which gathers from 1995 to 2010 and contains up to 1400 institutions with a high variety of organizational forms, I was able to identify a world-wide mission drift effect in their social goal of reaching out the poorest part of the population. Furthermore, I find that, on average, the outreach of an MFI has a significant negative influence on its short and long term financial performance. Despite that, I eventually proved that the probability that an MFI worsens its social performance substantially increases if its profitability has decreased in the previous years.
Das Konzept der Mikrofinanzierung wurde, insbesondere im Zuge der Mikrofinanzkrisen in Asien und Südamerika zunehmend kritisiert. Dabei stand vor allem die Kommerzialisierung der Branche im Zentrum der Kritik. In dieser Studie soll daher unter anderem die sogenannte „Mission Drifts”-These also dass das eigentliche Ziel des Mikrokreditwesen aus den Augen verloren wurde, empirisch überprüft werden. Mit Hilfe des Microfinance Information Exchange (MIX) Datensatzes, wurden Paneldaten von bis zu 1.400 Kreditinstitutionen, mit unterschiedlichen (Rechts-)formen, aus den Jahren 1995 bis 2010 ausgewertet. Die Regressionsanalyse hat gezeigt, dass Profitablität in der Tat einen negativen Einfluss auf das Ziel hat, möglichst arme Menschen zu erreichen. Auch der Trade-off zwischen der Reichweite von Mikrokrediten und kurzfristiger sowie langfristiger Profitabilität konnte nachgewiesen werden. Die Daten zeigten aber auch, dass Mikrofinanzinstitution dazu tendieren soziale Ziele zu vernachlässigen, wenn es im vergangenen Geschäftsjahr finanziell bergab ging.

Les limites des pratiques de gouvernance constituent l’un des risques majeurs qui menacent la viabilité des institutions de microfinance (IMF). Les IMF localisées en Afrique centrale, et notamment au Cameroun, ces limites se rapportent au manque de transparence dans les procédures de recrutement des dirigeants, dans les procédures de prise de décision organisationnelle et dans le mode de choix ou d’élection des administrateurs, et au système de contrôle des dirigeants. L’objectif de ce travail était de comprendre le fonctionnement des systèmes de gouvernance des IMF au Cameroun. Il s’agissait précisément d’une part de mettre en relief les mécanismes de gouvernance à l’œuvre dans ces institutions, et d’autre part, de déterminer les liens entre ces mécanismes et les indicateurs de la performance de ces dernières. De l’étude empirique, il ressort que le Conseil d’administration (CA) est l’organe central de la gouvernance dans les IMF au Cameroun. A côté de ce mécanisme, la politique de rémunération du dirigeant, les contrôles par les autorités monétaires, et par l’organe faitier (dans le cas spécifique des coopératives d’épargne et de crédit appartenant à des réseaux) et l’évaluation de l’activité de l’IMF par les agences de notation sont des mécanismes supplémentaires qui assurent la discipline des dirigeants de ces institutions. Par ailleurs, la structure monale du leadership au conseil d’administration, le nombre de métiers différents que compte le conseil d’administration, les contrôles des autorités monétaires et des organes faitiers, l’évaluation de l’activité de l’IMF par des agences de notation, le niveau d’études et l’ancienneté du dirigeant, ont une influence positive sur les indicateurs de la performance de ces institutions. A contrario, la présence des femmes an conseil d’administration et le nombre annuel de rencontres du conseil d’administration, ont une influence négative sur ces indicateurs. Cependant, le nombre d’administrateurs, l’indépendance du conseil d’administration vis à vis de la direction et l’audit (externe) régulier des comptes de ces institutions, n’ont aucune influence sur leurs indicateurs de performance
The drawbacks of governance practices constitute one of the major risks that threaten le viability of microfinancial institutions (MFI). With regards to MFIs located in Central Africa and particularly in Cameroon, these limitations are related to the lack of transparency in the hiring processes of managers, in the process of organisational decision taking and in the method of choice or election of directors as well as in the system of control of chief executive. The aim of this work is to understand the functioning of governance systems of MFIs in Caemroon. Precisely, it was a matter of highlighting on one hand the governance mechanisms put in place in these institutions, and on the other hand to determine the link between these mechanisms and the performance governance in MFIs in Cameroon. Next to this mechanism, the chief executive compensation, controls y monetary authorities and by the credit’s union central organi (specifically in the case of credit union belonging to networks) and the evaluation of activities by rating agencies are additional mechanismes that assure the control of chief executive in these institutions. Moreover, the structure of leadership in the board of directors, the number of different trades counted bu the board of directions, controls by monetary authorities and by credit union central organ, evaluation by rating agencies, the level of education and the sentant of the chief executive have a positive influence on the performance indicators of these institutions. Unlikely, the presence of women in the board of directors and the number of annual meetings of the said board have a negative influence on these indicators. However, the number of directors, the independence of the board of directors vis-a-vis management and the regular (external) audit of the accounts of these institutions have no influence on their performance indicators

Microfinance was rapidly hailed as a poverty alleviation tool by development agencies, researchers and practitioners. Despite the increasing capacity of MFIs to manage their financial sustainability, impact studies available report disappointingly low social achievements. Social performance assessment tools available struggle to combat a narrow MFI-centric approach which often overlooks contextual issues and institutional characteristics which can influence MFIs’ poverty reduction potential. This research’s main objective is to identify which and explain how organisational structures and management systems impact on MFIs’ social performance. This work uses a bottom-up research strategy, based on a 10-month extensive fieldwork in Bangladesh, a 490 household data-set, an ethnographic community study in Modhupur and institutional analyses of ASA and PDBF. It analyses the livelihoods, capitals and strategies of rural households in Bangladesh, explores their perceptions and experiences of microfinance and examines the management of socio-financial trade-offs within MFIs at different hierarchical levels. The research’s main findings seriously question the poverty reducing potential of standardised commercialised microfinance in settings characterised by vulnerability, shocks and seasonality, such as rural Bangladesh. It finds that although most MFIs have similar poverty reduction missions it is the way in which their organisational structures, managementsystems and working cultures are arranged that shapes their financial and social achievements. There is strong evidence that commercial MFIs can experience a silent practice drift at the field level in Bangladesh and that the commercialisation of MFIs provides strong incentives for the field staff to prioritise the achievement of their financial targets to the detriment of social performance, discouraging them from reporting low social performance. There are therefore few reasons why MFI senior managers should question their model and policies. This drift can manifest itself through malpractices hard-selling of loans, poor client selection and follow-up procedures, forcing clients into borrowing more and larger loans, using extreme forms of pressure through abusive language and behaviours and micro-collateral. This process usually has longer-term negative impacts on clients, especially the very poor who adopt successive short-term coping tactics to meet inflexible repayment schedules. This thesis concludes that commercial microfinance should not be targeted to the poorest and that more consideration should be given to clientselection and follow-up procedures. This thesis argues that the commercialisation of the global microfinance industry serves the interests of diverse stakeholders who contribute to maintaining the industry’s reputation though the media. This can be deemed an iceberg industry (that shows little of its actual workings and impacts to the public) which is sustained through considerable support from an increasing number of private investors for whom MFIs’ commercial expansion (regardless of its social achievements) serves their financial and political interests.

It has been commonly acknowledged that in order to reach the target clienteles with loans at attractive terms and conditions, an appropriate technology for delivering financial services must be developed. Next to this, current developments in microfinance industry encourage MFIs to offer wide-ranging services within a multiservice portfolio including microsavings, microinsurance, remittances, mobile banking etc. One of the main pillars of this trend has become MFIs increasing interest in the expansion into the savings market to reach more poor clients as well as to lower costs by attracting presumably cheaper deposits. Joint services are tailored to better meet needs of the poor and aim at building sustainable financial systems and establishing closer and long-term relationship with clients. Furthermore, the rapid evolution of microfinance has generated another essential and closely related trend: commercialization. The focus of this dissertation is on three emerging issues associated with the development of microfinance sector: incentive mechanisms to address contract enforcement and screening problems, performance of MFIs though the lenses of combined microfinance services (credit plus savings), and performance of MFIs though the lenses of capital structure. The essays in the dissertation vary in research methodology: one essay is theoretical and two are empirical. Moreover, the data come from diverse microfinance units: Microfinance Information Exchange (MIX) online database and Microfinance Centre for Central & Eastern Europe and the New Independent States (MFC). As far as methods are concerned the empirical essays use less frequently applied methodologies in microfinance studies: seemingly unrelated regression (SUR) and propensity score matching (PSM).

The dissertation chooses Vietnam as a typical case to address the gap in microfinance studies. Instead of focusing on the beneficiaries of the microfinance system, as many studies have been done, the subjects of this study are microfinance institutions (MFIs). The objective is to suggest a balanced sustainability approach for MFIs in Vietnam that refers to governance practices, legal environmental, and social and financial objectives as equally important. Particularly, it identifies the constraints and the potential, and suggests workable approaches to support Vietnam microfinance providers in extending and developing services throughout the country in a financially sustainable manner.
博士(現代アジア研究)
Doctor of Philosophy in Contemporary Asian Studies
同志社大学
Doshisha University

Au sein de l’Union Monétaire Ouest Africaine (UEMOA), une réglementation spécifique desactivités de microfinance existe mais bon nombre de ces institutions continuent d’exercer enmarge de la réglementation sans que les autorités de régulation ne soient en mesure d’y mettrefin. La réglementation a des avantages mais aussi des coûts pour les institutions demicrofinance (IMF) déclarées et l’anticipation des pertes ou des gains nets par ces institutionspeut accélérer ou ralentir leur mise en conformité avec la loi. Les travaux de cette thèse ontanalysé la réponse des institutions de microfinance à la mise en place de cette réglementation.De façon spécifique, elle a renseigné le lien entre réglementation et performance à partir desdonnées empiriques dans le but d’évaluer les incitations à la demande de réglementation. Ilest possible de substituer la régulation prudentielle à la discipline de marché dans la microintermédiationfinancière car l’effet bénéfique net pour les systèmes de financementdécentralisés est positif. Malgré leur vocation sociale, toutes les institutions de microfinancen’assurent pas pleinement leur double mission d’équilibre financier et de performance sociale.En effet, nombreuses sont celles qui ont une stratégie orientée vers la performance financière.Les résultats de nos travaux suggèrent également d’accroître l’effort de surveillance de lagouvernance des IMF jusqu’à un niveau minimum requis afin d’améliorer leur revenufinancier
In West African Economic and Monetary Union (WAEMU), microfinance institutions (MFIs)are regulated by specific laws but many of them operate outside the regulatory framework.Regulation has advantages but also costs for regulated institutions and the anticipation ofgains or costs may strengthen or limit their incentives for regulation. We analyze MFIsreactions to the implementation of that regulation. In other way, we investigate the linkbetween regulation and performance by using empirical data to estimate the incentives forregulation. We find, it is possible to substitute the prudential regulation for market disciplinein the microfinance intermediation because the net benefit is positive. In spite of their socialvocation, some MFIs prefer ensuring financial performance. Our findings also suggest thatincreasing governance's effort improves MFIs financial income

The current research examines organisational trust in three Sub-Saharan African countries. The study seeks to investigate organisational trust’s relationship with desirable workplace outcomes. The sample surveyed 423 loan officers and loan officer supervisors across 22 different microfinance institutions in Tanzania, Zambia, and Uganda. Relationships between two different referents of supervisor and top management trustworthiness perceptions and organisational trust attitudes were examined with organisation commitment as an attitude mediator on intention to quit and behaviour variables in-role behaviour and organisational citizenship behaviour. The contribution of the research involves testing the frequently quoted but less often used Gillespie (2003) reliance and disclosure measures of organisational trust in both an industry and countries that organisational trust research never previously occurred. Inasmuch, the study tests the models in the microfinance industry in Zambia, Tanzania, and Uganda examined through the confirmatory factor analysis of structural equation modeling of the structural model. The study supports existing knowledge that trustworthiness perceptions in top management do relate positively with organisational trust, but also finds several differences in relationships between variables compared to previous studies conducted in North America, Europe, and Asia. The research finds that the Mayer, Allen et al. (1995) trustworthiness measures have mixed relationships to organisational trust in contrast with previous studies. Perceptions of supervisor ability have no significant relationship with reliance and actually hold a negative relationship with disclosure. Benevolence perceptions relate significantly and positively only with disclosure and not reliance while integrity relates strongly with both reliance and disclosure. Employee intentions to rely on both supervisors and top management relate positively and strongly with organisation commitment, but disclosure and organisation commitment possess no significant relationship. Organisation commitment relates positively and significantly with in-role behaviour and organisation citizenship behaviour in both models. However, organisation commitment relates unexpectedly positively with intention to quit in the supervisor model, but negative in the top management model as found in previous research studies. The supervisor hypothesized model had a statistically significant chi-squared value x2 (394) = 707.168, df = 384, p < .0001, and showed appropriateness of fit with RMSEA = .046, CFI = .941, SRMR = .048. The top management hypothesized model had a statistically significant chi-squared value x2 (394) = 700.034, df = 384, p < .0001, and showed appropriateness of fit with RMSEA = .046, CFI = .942, SRMR = .047. Plausible explanations are discussed along with implications for theory and practice.

L’objet de la thèse est de présenter la conception de la performance défendue par les IMF au Bénin sur la base d’une définition large de la performance et de ses moyens de suivi, au-delà d’une approche uniquement duale économique et sociale prédominante dans la littérature en microfinance. Notre modèle de recherche se base sur une analyse multivariée de la performance des IMF d’une part, et sur la question de son degré de pertinence dans l’analyse de la performance de ces institutions en contexte béninois d’autre part. Le travail empirique effectué se base sur une étude qualitative du sujet au travers d’entretiens semi-directifs auprès de 14 institutions de microfinance (IMF) béninoises. Il nous a permis de confirmer que l’approche de la performance de ces institutions répond à des objectifs multiples, et les systèmes de contrôle et de pilotage retenus par ces organisations se fondent sur trois leviers imbriqués. Le contrôle par les valeurs dites fondamentales, le contrôle par la fixation d’objectifs et de limites amont et en aval de l’action des IMF par ses propriétaires-dirigeants, et le contrôle par le reporting reposant sur une approche multidimensionnelle de la performance. Au niveau des axes composant le levier reporting, en plus des axes financier, processus interne, apprentissage organisationnel et clients, nous verrons que l’environnement et les contraintes règlementaires sont également des variables retenues par nombre d’IMF dans l’analyse et la consolidation de leur performance. Notre travail, en plus d’analyser la conception de la performance des IMF, introduit des recommandations dans un but d’amélioration
The purpose of the thesis is to present the conception of the performance defended by MFI in Benin on the basis of a broad definition of performance and its means of monitoring, beyond a purely dual economic and social approach predominant in the microfinance literature. Our research model is based on a multi a varied analysis of the performance of MFI on one hand, and on the question of its degree of relevance in the analysis of the performance of these institutions in the Beninese context on the other hand. The empirical work carried out is based on a qualitative study of the subject through semi-structured interviews with 14 microfinance institutions (MFI) in Benin. It allowed us to confirm that the approach of the performance of these institutions meets multiple objectives, and the leading control systems retained by these organizations are based on three interlocking levers. Control by so-called fundamental values, control by setting objectives and limits upstream and downstream of the action of MFI by its owner-managers, and control by reporting based on a multidimensional approach to performance. At the level of the axes composing the reporting lever, in addition to financial, internal process, organizational learning and customers, we will see that the environment and the regulatory constraints are also variables retained by many MFI in the analysis and the consolidation of their performance. Our work, in addition to analyzing the design of MFI performance, introduces recommendations for improvement

The thesis examines factors that influence sustainability and success of microfinance institutions in Ghana. The topic is important, particularly in poverty stricken Africa, where microfinance institutions play a significant role in supporting governments' initiatives to reduce/alleviate poverty. The developed model is tested using data collected from 14 face-to-face interviews and 114 questionnaires. The data is analysed using different techniques- descriptive statistics, cross-tabulations and regression analysis. The research design and scale of the study are appropriate to both the problem addressed and doctoral level research. A number of factors in the model developed were found to be influencing the sustainability and success of microfinance institutions. A model was proposed that seeks to offer an explanation of sustainability and success of Microfinance Institutions in Ghana. The proposed model identified five categories being: institutional characteristics, agency costs, business strategy, environment/governance and success. Single factor analysis established positive relationships between sustainability and all the five factors but placed more emphasis on three out of the five factors namely; success, business strategy and environment/ governance. Multiple factor analysis established no significant differences in the sustainability with respect to the type of MFI, ownership and source of funding. Multiple Regression which allows for the testing of theories or models established a significant relationship between the Operational Self Sufficiency (OSS) and the predictors, especially the drop-out rate of clients and average loans. The Subsidy Dependence Index (SDI) was calculated for the various types of MFIs and the result was a high dependency ratio especially among the FNGOs. Though the dependency is on the decline, it is very slow indicating that most MFIs will depend on subsidies for a very long time to come. Finally it was observed that the relatively high interest rates charged by most of the MFIs tended to defeat the purpose for which the microfinance movement came about. Not only did the study confirm the research model, but it also revealed that most owners did not exhibit a deep sense of involvement and used general knowledge to practice in Ghana. The study concluded that success factors, business strategy, and environment/governance were the most critical of the sustainability factors in Ghana. It is therefore important that managers develop institutional capacities especially in managing the agency problem effectively if they have to be sustainable and successful.

The thesis examines factors that influence sustainability and success of microfinance institutions in Ghana. The topic is important, particularly in poverty stricken Africa, where microfinance institutions play a significant role in supporting governments¿ initiatives to reduce/alleviate poverty. The developed model is tested using data collected from 14 face-to-face interviews and 114 questionnaires. The data is analysed using different techniques- descriptive statistics, cross-tabulations and regression analysis. The research design and scale of the study are appropriate to both the problem addressed and doctoral level research. A number of factors in the model developed were found to be influencing the sustainability and success of microfinance institutions. A model was proposed that seeks to offer an explanation of sustainability and success of Microfinance Institutions in Ghana. The proposed model identified five categories being: institutional characteristics, agency costs, business strategy, environment/governance and success. Single factor analysis established positive relationships between sustainability and all the five factors but placed more emphasis on three out of the five factors namely; success, business strategy and environment/ governance. Multiple factor analysis established no significant differences in the sustainability with respect to the type of MFI, ownership and source of funding. Multiple Regression which allows for the testing of theories or models established a significant relationship between the Operational Self Sufficiency (OSS) and the predictors, especially the drop-out rate of clients and average loans. The Subsidy Dependence Index (SDI) was calculated for the various types of MFIs and the result was a high dependency ratio especially among the FNGOs. Though the dependency is on the decline, it is very slow indicating that most MFIs will depend on subsidies for a very long time to come. Finally it was observed that the relatively high interest rates charged by most of the MFIs tended to defeat the purpose for which the microfinance movement came about. Not only did the study confirm the research model, but it also revealed that most owners did not exhibit a deep sense of involvement and used general knowledge to practice in Ghana. The study concluded that success factors, business strategy, and environment/governance were the most critical of the sustainability factors in Ghana. It is therefore important that managers develop institutional capacities especially in managing the agency problem effectively if they have to be sustainable and successful.

This dissertation consists of two empirical papers that explore recent phenomena in Banking and Microfinance Performance. Chapter 1, “Market Power and Bank Performance in MENA Countries,” examines the determinants of market power in 12 Middle Eastern and North African (MENA) countries in the aftermath of the Global Financial Crisis (GFC), specifically within six Gulf Cooperation Countries and six non-Gulf countries. We examine the dynamics of bank competition in MENA countries, provide an up-to-date assessment of market power, investigate the factors impacting bank competition, and explore the evolution of market power during the financial crisis. Our results show an overall increase in market power following the GFC for both regions. We find that bank size, capitalization, and diversification affect market power differently in the pre-crisis and post-crisis years. Larger banks enjoy cost advantages and the diversification impact on market power has decreased in the post-crisis years and the impact of capitalization on market power increased during the GFC. Overall, banks with higher capitalization can better weather the crisis. Chapter 2, “The impact of firm-level characteristic and county-specific attributes on the performance and efficiency of the Microfinance institutions,” estimates the impact of country-specific macro-variables and firm-specific attributes on the financial performance and the efficiency of microfinance institutions (MFIs). We use a large international up-to-date database consisting of over 10,000 firm-years for MFIs over 89 countries during the period 2008-2015. Several interesting findings emerge: a) regulation and outreach are negatively correlated. b) There is a negative and highly statistically significant correlation between the percentage of female borrowers and loan size, which is evidence of “mission drift”. c) An increase in the percentage of female board member has positive and statistically significant effect on MFIs profitability and ROA; which emphasizes the importance of female participation in leading position in MFIs.

La microfinance est un moyen de lutte contre la pauvreté dans les pays en développement, à travers le financement des activités génératrices de revenus des ménages pauvres. Cependant, la meilleure manière d'aider les pauvres à avoir accès aux services financiers suscite des débats entre deux approches opposées : les welfarists et les institutionalists. Ces approches oscillent entre deux exigences fondamentales de la microfinance : le principe de solidarité qui renvoie à la performance sociale et la rentabilité de l'institution qui relève de la performance financière. Y-a- t- il arbitrage ou compatibilité entre ces deux performances? L'état d'avancement de la recherche sur cette question suggère la compatibilité, voire la complémentarité, de ces deux exigences de la microfinance.Une analyse factorielle en coupe instantanée (année 2008) sur un échantillon de 52 IMF dans 9 pays de la région MENA examine la relation entre ces deux performances. Les résultats de cette analyse soulignent que la plupart des IMF d'Egypte sont à la fois socialement et financièrement performantes alors que celles du Yémen ne sont que socialement performantes et celles de la Jordanie ne sont que financièrement performantes. Les facteurs déterminants de ces deux performances varient notamment selon le statut (ONG vs. non ONG), la maturité, la méthodologie de prêt (solidaire vs. individuel), la zone d'intervention (rurale vs. urbaine), le niveau de transparence informationnelle, la localisation géographique (pays) et la réglementation des IMF.Une étude économétrique en panel (1998-2008) examine la causalité univoque et interactive entre la performance sociale et la performance financière. Les résultats des régressions statistiquement significatives montrent que la performance sociale a un impact négatif sur la performance financière et inversement ; l'interaction à long terme entre ces deux performances est encore floue. Les résultats montrent aussi que les principaux déterminants de ces deux performances varient selon le cycle de vie de l'IMF ; la relation entre l'âge et la performance n'est pas linéaire ; la règlementation de l'IMF dépend non seulement de son pays mais aussi de son statut institutionnel ; les effets macroéconomiques sont importants dans l'atteinte de deux performances ; les IMF matures cherchent à assurer un bon taux de remboursement au lieu d'augmenter les rendements de leurs portefeuilles
Microfinance is a means of the struggle against poverty in developing countries through financing activities that generate incomes for poor households. The issue regarding the best way to provide financial services to the poor has fuelled intensive debates between two different schools of thought: institutionalists and welfarists. This opposition faces two requirements of microfinance: Targeting the poorest among the poor, which refers to the social performance and enhancing the profitability of the institution (financial performance). Is there a trade-off between these two performances or can they combine? The state of research upon this issue suggests that these two requirements are compatible and may even be complementary.Following a cross-section factor analysis, we examine the relationship between social performance and financial performance on a sample of 52 MFIs in 9 selected countries of the MENA region: Most MFIs in Egypt are both socially and financially successful, whereas those in Yemen are socially successful and those in Jordan are financially successful. The determinants of these performances vary according to the status (NGO vs. non NGO), maturity, credit methodology (collective vs. individual), the level of information disclosure, geographical location (countries) and regulations of MFIs.An econometric panel study (1998-2008) examines the unequivocal causality and causal interaction between social performance and financial performance. The regression results show that social performance has a negative impact on financial performance and conversely, and the causal interaction between these two types of performances remains unclear in the long run. The results also show that the main determinants of these two performances depend on the life cycle of MFIs, the relationship between age and performance is not linear, the regulation of MFIs depends not only on their countries but also on their institutional status, macroeconomic effects are important in achieving performances, mature MFIs seek to ensure good repayment rates instead of increasing portfolio yield

En financiarisant des populations exclues de la finance traditionnelle (banque, marchés financiers), la Microfinance s'est vu assigner une mission de lutte contre la pauvreté : elle permettrait ainsi aux individus de financer leurs propres activités économiques génératrices de richesse. Mais la financiarisation de ces populations induit certains effets, non anticipés, et dont les conséquences sur leur comportement ne sont pas négligeables : pour pouvoir les servir, les Institutions de Microfinance ont transféré sur ces populations le risque de crédit et le coût de sélection. Cette thèse se propose d'analyser, à travers la théorie de l'entrepreneur, les conséquences d'un tel transfert sur les aptitudes entrepreneuriales des individus. D'après notre analyse, au-delà d'une certaine dose de risque, il est vain de penser qu'un individu endossera davantage de risques économiques en se lançant dans une activité innovante porteuse de richesse. Dans le contexte particulièrement risqué dans lequel vivent les populations bénéficiaires de services de Microfinance, il faut réfléchir à des solutions qui permettent de réduire le risque supporté par l'entrepreneur et non à des solutions qui ont pour conséquence l'augmentation du niveau de risque supporté par celui-ci. Notre travail participe à cette réflexion et à la recherche de solutions viables
By financing people excluded from traditional finance (banking, financial markets), microfinance has been assigned a mission to fight against poverty by enabling individuals to finance their own activities generating economic wealth. But financialization of these populations involves some effects yet to unanticipated consequences on the behavior of beneficiaries: to be able to serve them, microfinance institutions have transferred credit risk and the cost of selection. Through the theory of the entrepreneur, this thesis will analyze the consequences of such a transfer on the individual's entrepreneurial skills. According to our analysis, beyond a certain amount of risk, it is pointless to consider an individual endorse more economic risks by engaging in innovative activity. In a particularly risky environment in which beneficiaries of microfinance services live, it is necessary to consider solutions that reduce the risk borne by the contractor and not solutions which result in increased levels risk supported by the individual. Our work launch this debate and search a viable solution

The purpose of this study is to examine how the management of micro-finance institutions in Uganda has affected the performance indicators of these institutions, and whether or not the management of these institutions is responsible for their failure. The need to carry out this study arose as micro-finance institutions in Uganda failed to attain their planned performance indicators, to such a degree that most of them closed down. Although at their inception there was considerable entrepreneurial activity supported by a highly favourable government policy environment, their closure soon after establishment raised concern as to what caused them to fail. This study was encouraged by the observation that most of these institutions failed to realise their performance indicators as planned, but the underlying cause was not clear. Thus, the study focuses on establishing stakeholder perceptions of the management of the micro-finance institutions, and the relationship between their management (planning, implementation of planned programmes, and control) and their performance indicators, following the rationale of the functional and contingency paradigms of the concept of management. The study examines the way management dealt with these institutions‟ internal and external environments to influence their ability to realise their planned performance. The study is conducted using positivistic research methodology. This involved a collection of quantitative data from a sample of 454 respondents, including 64 managers, 177 employees, and 213 clients. Structured questionnaires were used to collect the data, and purposive and convenience sampling were applied to select the respondents. The respondents were selected from 56 randomly selected micro-finance institutions operating in Central Uganda and representing 75 percent of the country‟s operational institutions by December 2009. The data were analysed using the narrative, chi-square test, the ANOVA, factor analysis, and correlation and regression methods of analysis aided by the SPSS programme. The findings show that 79.2 percent of stakeholders (managers, employees, and clients) perceived that the management of their institutions was not conducted well in terms of planning, plan implementation, and control. Eighty-one (81) percent of both managers and employees and 83.4 percent of clients held the perception that the institutions failed xvi to achieve their performance indicators as planned. Furthermore, 81.7 percent of both managers and employees described their institutions‟ internal environment as largely defined by unsatisfactory supervision, and 66.9 percent of them revealed that their institutions‟ external environment was defined by family relations. These relations adversely affected the ownership, decision-making, employee recruitment, and deployment in the institutions. The findings also show that there were significant positive but weak relationships between management (planning, implementation, control, and dealing with the internal environment and the impact of the external environment) and the performance indicators of the institutions. The management of the institutions realised only 24.8 percent of their predicted performance indicators. Of the 13 null hypotheses that were formulated for this study, seven were rejected and the alternative hypotheses were accepted, while six were accepted. All the dimensions of the management of the micro-finance institutions in Uganda need to be developed if the performance of the institutions is to be improved and sustained to desired levels. It is suggested that large performance improvements will be realised by ameliorating all the dimensions of the institutions' management, while placing more emphasis on improving the following dimensions: the organisation of the institutions; the managing of their internal environment and the impact of their external environment; the conduct of their internal concurrent control; and the planning of their performance indicators and marketing, involving all the stakeholders, in particular the managers, employees, clients, Government, and the Uganda Micro-finance Forum, where necessary. Further research is recommended into other factors affecting the performance indicators of the institutions, since none of the management functions had explained them properly.

Microfinance Institutions (MFIs) in sub-Saharan Africa (SSA) and the developing world have over the years attracted and received billions of US dollars (valued at over US$4 billion annually worldwide) in subsidies and concessionary funds. These subsidies are used to capitalize, promote growth, and help improve efficiency, operations and performance of newly established MFIs. At face value these interventions seem positive, yet studies have shown that they can be counterproductive in terms of their effect on the performance, efficiency and self-sustainability of the MFIs. This research addresses this issue by identifying four determinants of MFI’s performance and analysing the effect that subsidies have on them. A quantitative approach was used in the analysis in which the financial data of 92 MFIs were estimated using panel data estimation. The method of variable selection was based on the procedure used by Nawaz (2010). This method of determining the relationship between selected performance and sustainability indicators and subsidy was modelled on the Subsidy Dependant Index (SDI) method of analysis developed by Yaron (1992a) and the Return on Asset (ROA), Operational Self-Sufficiency (OSS) and Financial Self-Sufficiency (FSS) methods of analysis developed by the SEEP Network (2005). The summary results of the analysis showed that the majority of MFIs (90.22%) were not sustainable nor were they found to be profitable. However, the results show that all the institutions were operationally self-sufficient and that, on average, MFIs in SSA charged higher interest rates than MFIs in other parts of the world. The average OSS was 136.01% showing that MFIs are operationally self-sufficient. However, the average FSS value was 74.32% reflecting that the MFIs are not able to raise enough revenue to cover their capital and indirect costs which would ultimately result in them running out of equity funds. The inclusion of subsidies in the sustainability regressions resulted in a decline in the ability of the MFIs to attain operational and financial self-sufficiency, thus showing the negative effect subsidies have on the sustainability of MFIs. Inflation and interest rates charged on loans also had a negative effect on sustainability as they resulted in an increase in costs and a decline in the number of low income clients. MFIs located in wealthier countries were found to be more efficient because of the lower costs associated with having wealthier clients who have larger loan sizes. MFIs in lower income countries have to overcome limitations of weak infrastructures, low population densities and rural markets which increase operating costs. Older institutions were found to more likely be sustainable than new and young MFIs as expected because of their improved efficiency and productivity and also because they have more experience and are therefore better equipped to overcome challenges. However, by adding subsidy in the analysis the results show that the level of efficiency of MFIs is reduced. The results also show that with increased maturity MFIs are found to be more productive, however, when subsidies are included in the finances the levels of productivity will decline as costs increase. NBFIs are the most suitable business model to practice in MFIs in Africa according to the findings which reflect that NBFIs are more profitable and efficient than any of the other business models in the sample. However, cooperatives were found to be the most productive business model as they have a stronger borrower to staff ratio than the other institutional types. Furthermore, cooperatives and NBFIs tend to have clients who are better off and therefore can afford to take larger sized loans, unlike clients of NGOs who are poor who struggle to have a stable income. Copyright
Dissertation (MSc(Agric))--University of Pretoria, 2012.
Agricultural Economics, Extension and Rural Development
unrestricted

Microfinance institutions have evolved as an economic development tool intended to benefit low-income people. The benefit, however, can only be achieved if the institutions have a good financial and outreach performance. This study has three objectives. The first objective is to assess the influences of informal and formal institutions and their interrelationships on the practical operational arrangement of Village Credit Institutions of Bali (Lembaga Perkreditan Desa or LPD). Second, to evaluate the financial performance and outreach indicators of the institutions and to assess the influence of informal and formal institution on the sustainability of the institutions, which has received little attention from previous studies. Finally, to outline some elements of a strategic business plan for two selected village credit institutions (LPDs) in Gianyar district, LPD Mas and LPD Kerta. By using a case study approach, this study finds that the informal institutions (such as social values, norms, and sanctions) have significant influences on the practical arrangements of the LPDs, including the organisation, recruitment procedure, delivery mechanism, and remuneration system. Along with the influence of informal institutions, the formal institutions have also had some direct influences on the practical operational arrangements of the LPDs that are reflected in the supervision and guidance system of LPDs, an obligation to apply prudential principles of banking, and the remuneration system. The findings also show that the local government regulations (formal institutions) concerning the LPDs have accommodated the informal institutions of the Balinese in the background of their establishment, status and ownership, and organisation of the LPDs. Based on the performance indicators - portfolio quality, leverage, capital adequacy ratio (CAR), productivity, efficiency, profitability, self-sufficiency, and outreach � the LPDs in Gianyar district could be considered as success microfinance institutions. The success is influenced by some important factors. First, the use of local people in managing the LPDs and the application of character-based lending system in screening the clients. This has resulted in a high clients� sense of belonging and moral obligation to support the development of the LPD Second, the use of social (custom) sanctions in the contractual enforcement has forced the borrowers to comply with their credit contract in a timely fashion. Third, the use of local community personnel whose remuneration is based on performance and low transaction costs has resulted in the high efficiency of LPDs. Fourth, a growing economy and supporting government policy at all levels through provision of a legal basis for the LPDs and the Central Bank regulation (formal institutions) have also contributed to the success of the LPDs. Thus, based on the necessary conditions of sustainable microfinance institution proposed by some scholars(Yaron 1994; Christen 1998), it can be concluded that the Gianyar district LPDs have been sustainable, and by that implication they have positive net social benefits for their clients. Any attempt, however, to replicate the achievements of the LPDs by imitating its mode of operations should be conducted with great caution. A mechanism that works well in one socioeconomic environment (in this instance, in Bali) will not necessarily work in another, where the social system including social norms and values are different. But, the experience of the LPDs is a valuable thing since it has highlighted some critical issues that should be considered when handling the complex issue providing financial services to rural people.

Over the last few decades, microfinance industry has played an essential role in alleviating poverty level and helping the underprivileged, by enabling access to myriads of financial services. Statistics from the World Bank reveals that, currently, only 4% of the underprivileged were served out of the 3 billion potential clients. Such results were due to several claims, particularly the operational and financial challenges faced by the MFIs in the constant flux, inviting more attentions towards its performance. While explicit focuses were given by many researchers towards mobile banking and Information Communication Technology (ICT) and online services in improving the MFIs performance, the study on how Social Media, as a rapidly growing online phenomenon, could affect the MFIs performance remain scarce. Hence, this study was aimed at investigating and clarifying the impact of social media on MFIs, based on four dimensional performance indicators: efficiency, financial sustainability, portfolio quality, and outreach. A model was developed utilising Resource Based-View (RBV) Theory, to test the relationship between social media application and organisational performance. A quantitative approach has been adopted employing from web-based questionnaires, to collect data from MFIs employees in developing countries such as Kenya, India and Jordan. Structured Equation Modelling (SEM) technique (i.e. SPSS and AMOS 20 software) was used as a tool to analyse the responses. Results revealed a significant influence of the social media over the MFIs performance, offering valuable insights to both researchers and practitioners in the domain of micro-finance, as well as social media – conforming that the adoption of social media as marketing, advertising and communication tools could significantly improve the MFIs performance. Keywords: Microfinance, Microfinance Institution Performance, Social Media, Resource Based View Theory.

Cette thèse mobilise les théories de l’intermédiation financière et les théories des contrats pour analyser les déterminants de la viabilité des institutions de microcrédit. Elle permet de comprendre en quoi le design d’un produit de crédit de groupe et les procédures mises en place par les agents d’une institution urbaine peuvent influencer la capacité des membres d’un groupe à caution solidaire à limiter les effets de l’anti-sélection et de l’aléa moral. A travers l’analyse du couple « information tangible / degré de centralisation des opérations de crédit », elle se réfère à la théorie de l’architecture organisationnelle pour expliquer les mécanismes qui mènent au dysfonctionnement des réseaux des coopératives de microfinance. Enfin, en faisant appel à la théorie des droits de propriété, la théorie de l’agence et la théorie des coûts de transaction, elle analyse l’impact du statut juridique sur les performances économiques des institutions de microcrédit
This thesis anlyzes the determinants of the viability of microlending institutions against the background of theories of financial intermediation and contract theory. The first part shows how a particular design of group loans and the process of lending decisions in a urban institution can influence the capacity of group members with joint liability to mitigate the effects of anti-selection and moral hazard. Through the analysis of how “hard and soft information”, on the one hand, and “the degree of centralization of credit operations”, on the other hand, are combined, the second part relies on the organisational architecture theory to explain the mechanisms which lead to the dysfunction of financial cooperatives networks. Lastly, assuming the theory of property rights, as well as agency theory and transaction cost theory, it analyzes the impact of the legal structure on the economic performances of microcredit institutions

Les performances financières et sociales sont des caractéristiques institutionnelles importantes qui permettent aux pauvres et aux ‘quasi-pauvres' d'avoir accès aux crédits dans des conditions favorables, et aboutissent en même temps à un fonctionnement durable et aux mécanismes efficaces de gouvernances dans les institutions micro financières (IMFs). Dans ce contexte, cette étude a été menée afin de déterminer les variables financières/sociales/gouvernables qui peuvent influer les indicateurs de performance financière et sociale des IMFs à l'échelle mondiale; et de développer pour la première fois des arbres logiques décisionnels (en grappes) simples et pratiques qui peuvent être considérés comme des outils précieux aidant la mise en œuvre de stratégies efficaces pour les différents types des IMFs (à but lucratif et non lucratif) à l'échelle nationale.La première partie de cette thèse expose les données financières et sociales globales qui ont été extraites au cours des cinq dernières années (2007-2011) à partir de plusieurs bases de données bien connues (ex. Microfinance Information Exchange, Mix Market, Rating fund, etc…) pour les IMFs choisies classées comme ayant 4 ou 5 diamants (soit, 263 IMFs à but non lucratif et 135 IMFs à but lucratif) distribuées à travers les continents. Parmi les 263 IMFs à but non lucratif, l'échantillon de données a été composé de 192 organisations non-gouvernementales (ONGs), 42 institutions non bancaires et 29 coopératives. Un grand nombre de variables prédictives (54) ont été recueillies reflétant les aspects de l'environnement financier de ces IMFs (par exemple l'index des dépenses administratives, l'index de solvabilité, le coût par prêt, le nombre des déposants, etc…), les caractéristiques sociales (ex. profondeur, pourcentage des emprunteurs actifs ‘femmes', marché rural/urbain, niveau de pauvreté, etc…) et les mécanismes de gouvernance (ex. la taille de l'entreprise, la taille du conseil, la régulation, l'audit, l'affiliation à un réseau, l'assurance, etc…). Cette 1ère partie compare également l'efficacité de la plupart des méthodes/modèles statistiques les plus utilisés (incluant la régression linéaire, la régression logistique, les méthodes bayésiennes, les réseaux artificiels des neurones, l'analyse en composantes principales, etc….) pour estimer les indicateurs de performance financière et sociale au sein des IMFs. Elle inclue aussi une description détaillée du processus de construction des arbres décisionnels en grappes qui peut être utilisé pour cette estimation ainsi que toutes les étapes reliées (comprenant l'évaluation des divisions, l'assignement des catégories aux nœuds, les valeurs manquantes avec des répartiteurs de substitution, les critères d'arrêt, etc….).La deuxième partie explore les relations quantitatives entre les quatre indicateurs de performance financière les plus couramment utilisés [autosuffisance opérationnelle (operational self-sufficiency OSS), marge bénéficiaire (profit margin PM), rendement des actifs (return on assets ROA), et rendement des capitaux propres (return on equity ROE)] et les principales variables prédictives pour les IMFs choisies à but non lucratif (incluses à partir de 53 pays) à travers l'application de la modélisation par arbre de régression. Pour chaque indicateur de performance financière, plusieurs arbres de régression non élagués (684) ont été développés : (i) en utilisant toutes les variables prédictives, (ii) en utilisant toutes les variables prédictives financières seulement, (iii) en utilisant toutes les variables prédictives sociales seulement, (iv) en utilisant toutes les variables prédictives de gouvernance seulement, (v) en appliquant une seule variable prédictive à la fois, (vi) en excluant chaque variable à la fois du groupe potentiel des variables prédictives, et (vi) en forçant la séparation initiale de l'arbre à travers l'utilisation de la variable prédictive préférée afin d'explorer le pouvoir prédictif
Financial and social performances are important institutional characteristics that allow ‘the poor and the near-poor' to have access to credit in favorable conditions, and drives sustainable efficiency and effective governance mechanisms in MFIs (microfinance institutions). In this context, this study was conducted to determine the most influencing financial/social/governance variables (with their relative importance in %) that may affect the financial and social MFI performance indicators on worldwide basis; and to develop simple and practical microfinance tree-models (for the first time) that can be considered valuable tools helping with the implementation of efficient strategies among nonprofit and profit MFIs at a national scale.The first part of this thesis exposes the global financial and social data that has been extracted over the five recent years (2007-2011) from several well-known databases (e.g., Microfinance Information Exchange, Mix Market, Rating fund, etc.) for the chosen MFIs ranked four or five diamonds (i.e., 263 nonprofit MFIs and 135 profit ones) distributed widely over the continents. Among the 263 nonprofit MFIs, the data sample was composed of 192 Non-Governmental Organizations (NGOs), 42 non-bank institutions and 29 cooperatives. A large number of predictor variables (54) have been collected capturing aspects of the financial environment of these MFIs (e.g., administrative expense ratio, ratio of solvency, cost per loan, number of depositors, write-off-ratio, etc.), the social characteristics (e.g., depth, percent of women active borrowers, rural/urban market, poverty level, etc.) and the governance mechanisms (e.g., firm size, board size, regulation, audit, network affiliation, insurance, etc.). This first part compares also the efficiencies of the most used statistical methods/models (including linear regression, logistic regression, Bayesian methods, artificial neural networks, cluster analysis, principal component analysis, decision-trees, etc.) for estimating diverse financial and social performance MFIs' indicators. It includes also a detailed description of the tree building process that has been used for such estimation and all related steps (involving evaluating splits, assigning categories to nodes, missing values with surrogate splitters, stopping criteria, etc.).The second part explores quantitative relationships between the four commonly worldwide used financial performance indicators (operational self-sufficiency OSS, profit margin PM, return on assets ROA, and return on equity ROE) and key financial/social/governance predictor variables for the chosen non-profit MFIs (included from 53 countries) through the application of regression-tree modeling. For each financial performance indicator, several un-pruned regression trees (684) were developed: (i) using all predictor variables, (ii) all financial predictor variables only, (iii) all social predictor variables only, (iv) all governance predictor variables only, (v) applying only a single variable at a time, (vi) excluding each variable one at a time from the potential pool of predictor variables, and (vii) forcing the initial split of the tree using the preferred predictor variable for exploring the predictive power of independent predictors. The obtained results demonstrate that the strongest relationships were associated with ROE and ROA, the proportion of variance explained being equal to 99.8% and 99.5% respectively, followed by PM (97%) and OSS (95%). The second part also showed that the financial predictor variables did interfere differently in building the financial performance regression trees and associated relationships where ; administrative expense ratio influenced ROE (100%) ; average loan balance per borrower affected OSS (100%); cost per borrower, number of depositors, operating expense:loan portfolio, and risk coverage had significant impacts on ROA/ROE (98.5-100%)

La microfinance est un outil destiné aux pauvres et se définit comme la fourniture de services financiers à une partie de la population exclus du système formel des banques par défaut de garanti pouvant entrainer des risques d'impayés. A cet effet, pour continuer de manière durable leurs activités tout en restant pérennes, les IMF doivent s'assurer une performance économique ou financière tout en respectant leurs objectifs sociaux, c'est-à-dire toucher un maximum de pauvres. Dès lors se posent les questions de la performance économique, financière et sociale des organisations de microcrédit. La performance économique se définit comme la rentabilité de l'actif économique (capitaux propres et dettes financières), la performance financière s'intéresse à la rentabilité des fonds propres alors que la performance sociale s’appréhende en termes de portée de l'offre de crédit. Ces performances sont étudiées à travers des variables qui sont d'ordres économiques et sociaux. La recherche a porté sur l'UEMOA et les BRICS (à l'exception de la Russie), et elle a couvert une période de 16 ans. Les données sont traitées par le logiciel Stata 11 en utilisant l'économétrie en données de Panel. Suite aux différentes régressions, il convient de signaler qu’il existe une corrélation entre la performance sociale et les variables endettements (positive), fonds propres (positive), la qualité de portefeuille (négative) et la performance économique (négative). La performance financière est corrélée positivement avec la clientèle active, le volume d’épargne, et les subventions et elle est corrélée négativement avec le portefeuille à risque et le volume de la dette. La performance économique est corrélée avec la clientèle active (positivement), le volume des subventions (positivement) et le portefeuille à risque (négativement). Suite à ces résultats, des suggestions ont été faites afin de permettre aux IMF d’atteindre les objectifs fixés
Microfinance is a way for helping poor people and it is used to give financial services to a part of the population excluded from formal bank system, short of guarantee that may lead to risk of default. To this end, to continue their activities in a sustainable way the MFI must ensure economic or financial performance while respecting their social objectives to grant loans to the greatest number of poor. In this way, the questions about economical, financial and social performance of microcredit organization are essential. The economic performance is the profitability of economic asset (equity and financial debt); the financial performance focuses on the return on equity, while social performance is understood in terms of supply credit. The research has concerned WAEMU and BRICS (with exception of Russia) during a period of 16 years. The data is processed by the Stata11 software using panel data econometrics. Following the different regressions we get a correlation between social performance and debt variable (positive), equity (positive), portfolio quality (negative) and economic performance (negative).The financial performance is positively correlated with active customers, the saving volume and subsidies and is negatively correlated with portfolio at risk. The economic performance is correlated with the active customers (positively), the volume of subsidies (positively) and the portfolio at risk (negatively). Following these results, suggestions were done to permit MFI to achieve the set objectives

碩士
國立成功大學
國際管理碩士在職專班
96
Microfinance sector in general and regulating microfinance institutions (MFIs) in particular have been drawing greatly attention of researchers, practitioners as well as regulators over the past decade. Besides advocates for rush to regulated microfinance, not few opponents caution to form and transform regulated microfinance institutions. The practice also simultaneously reflects both contrary sides as referred in those research studies and reports. Given in such controversial context, the paper aims at comparing the performance between regulated and non-regulated microfinance institutions. Mainly base on the research of Hartarska & Nadolnyak (2007), the first study so far examined the impact of regulation on MFIs, this paper deliberately focusing on Southeast Asia countries. The most important objectives are to test the effect of regulatory factor to MFIs and compare to the past literature reviews. The findings after using the empirical analysis shows that regulatory status have no direct effect on sustainability and number of active borrowers, as well as efficiency that are consistent with the cross-country evidence. However, the result finds the negative influence of savings to outreach and efficiency, which is considered as indirect effect of regulation. In other words, MFIs have savings reach less number of borrowers and efficiency.

Cette thèse est composée de trois essais portant sur la performance des Institutions de Microfinance (IMFs) évaluée a I'aide de la méthode d'enveloppement des données (Data Envelopment Analysis ou DEA). L'objectif general est de voir si ces institutions qui doivent faire un compromis entre leur rôle social et leur rentabilité financière opèrent de facon efficace. Le premier essai est centré sur les IMFs de I'Union Éconornique et Monétaire Ouest Africain (UEMOA). Dans un premier temps, nous évaluons suivant les aspects opérationnel, coût, revenu et profit l'efficacité relative des IMFs dans chacun des sept pays de I'UEMOA. Dans un deuxièrne temps, nous déterrninons les sources d'inefficacité dans Ie temps et d'un pays par rapport à un autre en utilisant l'indice de productivité de Malmquist. Ces sources peuvent être dues soit au progrès technologique (innovations dans Ie secteur qui entrainent un déplacernent de la frontière efficace), soit au changement d'efficacité technique (déplacement par rapport à la frontière). Les résultats montrent que Ie niveau d'efficacité est homogène à l'interieur d'un mêrne pays, mais qu'il diffère d'un pays à l'autre. En tenant compte du prix de leurs ressources, nous observons également que les IMFs ont la possibilité de minimiser leurs coûts. Ce manque d'efficacité maximum au niveau des coûts entraine une moindre efficacité au niveau des revenus et des profits. Nous observons aussi, avec l'indice de productivité de Malmquist, que Ie niveau de productivité dans Ie secteur résulte plus du progrès technologique que de I'amélioration de I'efficacité opérationnelle (technique). Dans Ie deuxièrne essai, nous comparons la performance des IMFs dans trois régions géographiques (Afrique, Asie du Sud et de l'Est et Amérique Latine). L'objectif est d'analyser l'impact des structures environnementales ou régionales sur l'efficacité opérationnelle, coût, revenu et profit des IMFs. Les résultats montrent des niveaux d'efficacité comparables en Asie et en Amérique Latine. L'Afrique est quelque peu en marge de ces deux régions. De façon générale, nous constatons une faible efficacité coût et, en conséquence, des efficacités économique, revenu et profit relativement faibles. L'indice de Malmquist montre également que la productivité dans le secteur est principalement attribuable au progrès technologique. Le troisième essai analyse I'impact du statut de I'IMF sur son niveau d'efficacité. Les IMFs ont généralement Ie statut de coopératives (COOP), d'institutions financières non bancaires (IFNB) ou d'organisations non gouvernementales (ONG). Depuis quelques années, certaines institutions adoptent Ie statut de banque. La question est de savoir sl la structure organisationnelle de I'IMF a un impact sur son niveau d'efficacité relative. Lorsqu'on évalue les IMFs sur Ie plan opérationnel selon un rendement d'échelle variable, les résultats montrent que celles ayant Ie statut de banque sont plus efficaces que les autres formes juridiques . Les COOP présentent généralement un faible niveau d'efficacité technique. Les ONG et les IFNB se situent entre ces deux types de structures. Tout comme dans le cas précédent, nous trouvons une faible efficacité coût, ce qui se répercute négativernent sur les efficacités éconornique, revenu et profit. Quant aux sources d'inefficacité, nous observons qu'elles sont principalement dues aux inefficacités techniques plutot qu'aux innovations technologiques. En conclusion, tout d'abord au niveau des pays de l'UEMOA, cette thèse montre que les IMFs sont plus performantes dans un environnement politique stable. On constate aussi que les IMFs de certains pays auraient intérêt a copier les pratiques d'autres pays en vue d'améliorer leur performance. Ensuite, I'analyse portant sur différentes zones géographiques révèle,à tout Ie moins sur la base de nos critères,que les IMFs sont comparativement moins performantes en Afrique. Peut-être pour des raisons de stabilité politique ou d'environnements éconornique, juridique et social différents, ou encore d'un attrait plus faible de capitaux etrangers, Peut-être aussi à cause d'une structure d'opération (par exernple : coopératives, organismes non gouvernementaux, institutions non bancaires) différente des IMFs d'une zone géographique à I'autre. Sur ce dernier point, les résultats montrent que les IMFs qui opèrent sous Ie statut de banque sont relativement plus efficaces que les autres.

Companies go public in order to obtain more attractive financing prices from stock markets in exchange for the promise of delivering profits to the investors who buy their stock. Microfinance Institutions (MFIs) aim at alleviating poverty in the society by providing the poor with opportunities for the creation and development of income generating activities. The uprise in the number of connections between capitalist interests and social ones originated several discussions and controversies among the microfinance community. This paper presents SKS Microfinance IPO, which was the first Microfinance Institution in India to go public. The IPO was a success and so were the ensuing 5 weeks. However, soon afterwards a crisis was triggered in the industry, making SKS’s value fall enormously. In this study it is our goal to understand the reasons behind SKS’s performance and whether going public is a viable path for Microfinance Institutions. Our analysis focuses on the internal and external factors behind the company's market performance, its operational evolution, and its position relative to its peers. We discover that the factors influencing SKS performance were specific to its managerial distress and to external conflicts arising in the sector. With strategic coherence and market transparency we believe there is an open way for MFIs to go public.
Les entreprises s'introduisent en bourse afin d'obtenir du financement à un meilleur prix sur le marché. En échange, elles promettent des bénéfices aux investisseurs qui achètent leur stock. Les Institutions de Microfinance (IMF) visent à réduire la pauvreté sociale: elles offrent aux plus démunis la possibilité de générer une activité rémunératrice qui leur permettra de sortir de leur condition. L'augmentation des liens entre les intérêts capitalistes et les intérêts sociaux ont généré de nombreuses discussions et controverses parmi les experts en microfinance Cet article présente l’introduction en bourse de SKS Microfinance, la première institution de microfinance en Inde à s'introduire en bourse. Cette introduction a été un succès pendant les 5 premières semaines. Cependant, une crise dans l'industrie se déclanche à ce moment, entraînant une chute significative de la valeur de SKS. Nous avons ici l'intention d'étudier les raisons qui expliquent la performance de SKS ainsi que de discuter si l'introduction en bourse est une voie viable pour les institutions de microfinance. Notre analyse se focalise sur les facteurs internes et externes liés à la performance de cette entreprise, sur son évolution opérationnelle, et sue sa position par rapport aux autres entreprises. Au terme de cette étude, nous concluons que les facteurs influençant les performances de SKS étaient liés aux problèmes de management et aux conflits externes propres au secteur. Ainsi, nous croyons qu' avec une stratégie cohérente et de la transparence dans le marché, les IMF peuvent trouver leur place en bourse.
Uma empresa é cotada em bolsa com o objectivo de obter melhores condições de financiamento “pagando” aos investidores parte do lucro do seu negócio. As Insituições Microfinanceiras (MFIs) têm como objectivo reduzir a pobreza na sociedade e dar uma oportunidade aos menos favorecidos de produzir um negócio rentável. A capitalização bolsista de Instituições Microfinanceiras originou muitas controvérsias entre os especialistas de microfinanças, por ligar objectivos sociais e capitalistas. Este artigo estuda a listagem da SKS Microfinance, primeira MFI na Índia. A Oferta Pública de Venda (OPV) foi um sucesso durante 5 semanas mas, uma crise na indústria desencadeou-se e o valor do SKS caiu substancialmente. Através de um estudo exploratório não só das variáveis que influenciaram a ação nos mercados, como da sua robustez operacional e financeira, pretendemos compreender as razões por detrás da performance do SKS. Deste modo, tentamos compreender se a introdução nos mercados é um caminho viável para as MFIs. Descobrimos que os fatores que influenciaram a performance do SKS foram especificamente devidos, por um lado a uma ineficiente gestão e por outro devido a conflitos no sector. Concluímos que, com uma estratégia coerente e transparência nos mercados, existe um caminho aberto para a cotação em bolsa das MFIs.

La réalisation simultanée des objectifs financiers et sociaux assignés aux institutions de microfinance représente un véritable défi. Afficher de bonnes performances financières (bonne rentabilité) et avoir un degré de portée sociale élevé (servir les plus pauvres) peuvent faire l'objet de contradictions. Dès lors ces « banques des pauvres » sont confrontées à un arbitrage qui peut engendrer une dérive de mission, leur raison d'être. Pour vérifier l'existence de ce fait nous avons procédé à une analyse de la relation entre performances financières et degré de portée sociale à partir d'un échantillon de 48 institutions de la zone économique UEMOA, de 2002 à 2004. Nos résultats ont montré que cette relation est neutre mais nous avons pu confirmer la présence d'un arbitrage qui découle de la volonté des institutions de réduire leur portefeuille à risque. Néanmoins nous n'avons pas pu détecter qu'un portefeuille à risque plus élevé va de pair avec une clientèle plus pauvre par conséquent une dérive de mission n'est pas justifiée. On peut donc conclure que les institutions de microfinance peuvent bel et bien réaliser leur double objectif de résultat et remplir ainsi leur « promesse ultime ». ______________________________________________________________________________ MOTS-CLÉS DE L’AUTEUR : Microfinance, Arbitrage, Performances financières, Degré de portée sociale, Dérive de mission.

This dissertation examines the potential trade-off between financial performance and social impact of social business ventures, particularly focusing on the “flagships” of social businesses to fight poverty: Microfinance Institutions (MFIs). With the commercialization of the sector, the innovative idea of microfinance has increasingly attracted criticism in literature. Hence, this thesis investigates the previous research in that area and analyses one MFI in particular: KazMicroFinance (KMF) in Kazakhstan. The qualitative analysis is motivated by the following key research question: Do the financial performance and social impact of KMF affect each other? It was hypothesized, that an increased financial performance of the institution affects the social impact negatively. The data for the analysis primarily derive from financial statements and annual reports of KMF. Based on this data, financial and social indicators of KMF were computed and observed for an assessment period of 2005-2015. Findings of this dissertation support the hypothesis. Though KMF is an institution repeatedly rewarded for its social impact and is one of the “best performing” MFIs globally, the analysis reveals, among others, that KMF distributes high dividend payments to shareholders, charges excessive interest rates of over 40% on average to its clients and makes serious changes in its borrowers’ structure, which in literature are associated with less inclusion of the poor. Therefore, this dissertation concludes that KMF’s operations are profit-driven and it is not purely a social business venture. KMF experienced mission drift and its financial performance impacts the social outreach negatively.
Esta dissertação examina o benefício potencial entre performance financeira e performance social de empreendimentos de negócio com foco nos modelos que visam combater a pobreza: Instituições de Microfinanças (MFIs). Estas definem-se como provedoras de serviços financeiros para pessoas pobres e distinguem-se dos serviços financeiros comuns que excluem nos seus serviços pessoas com este tipo de rendimento com vista a eliminar a pobreza. Com a emergência de várias MFIs diversos estudos foram conduzidos, revelando-se cépticos com a eficácia destas Instituições. Esta tese investiga estudos anteriores e analisa uma instituição em particular: KazMicroFinance (KMF) no Cazaquistão. A análise qualitativa baseia-se na seguinte questão: A performance financeira e o impacto social da KMF afectam-se mutuamente? Foi levantada a hipótese que um aumento da primeira afectava negativamente a segunda. Os dados para análise provêm dos mapas financeiros da KMF e permitiram o cálculo de indicadores financeiros e sociais para o período de 2005-2015 que confirmam a hipótese anterior. Apesar da KMF ser uma instituição premiada pelo seu impacto social positivo e ser uma das melhores MFIs a análise revela que a KMF distribui elevados dividendos, cobra taxas de juros em média 40% superiores e conduz mudanças substanciais na sua estrutura de mutuários o que na literatura está associado a menos inclusão de pessoas pobres. Esta dissertação conclui que as operações da KMF são conduzidas pelo lucro e não apenas pelo interesse social apresentando um desvio em termos de missão, a sua performance financeira impacta negativamente a performance social.