Competition and microfinance institutions’ performance: evidence from India

International Journal of Corporate Social Responsibility

Hailu Abebe Wondirad¹ 

[1] College of Business and Economics, Bahir Dar University, Bahir Dar, Ethiopia;

关键词: Microfinance;    Competition;    Boone Indicator;    Social performance;    Financial performance;   

DOI  :  10.1186/s40991-020-00047-1

来源: Springer

【 摘 要 】

This paper empirically examines whether competition (measured by using the new measure of competition, the Boone Indicator) moderates the relationship between Microfinance Institutions’ (MFIs) social and financial performances using data from 183 Indian MFIs over the period 2005–2014.The findings indicate that MFIs’ social and financial performances have a positive significant relationship. Moreover, the form of the relationship is both lead-lag and cotemporal. The Indian microfinance market was very competitive over the period 2005–2014. The empirical findings show that competition positively moderates the relationship between MFIs’ social and financial performances. More precisely, the empirical analysis provides evidence that the association between MFIs’ depth of outreach and operational self-sufficiency is conditional upon competition. These results suggest that in a competitive market, the more MFI deepen their depth of outreach, the higher contribution it has to their operational self-sufficiency.

【 授权许可】

CC BY