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Quality & Quantity

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19.12.2017

Better with age? The relationship between longevity and efficiency dynamics of nonprofit microfinance institutions

verfasst von: Ayi Gavriel Ayayi, Mahinda Wijesiri

Erschienen in: Quality & Quantity | Ausgabe 5/2018

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Abstract

The objective of this study is to investigate the relationship between longevity and efficiency dynamics of nonprofit microfinance institutions (NMFIs) over the 2005–2014 period. We examined this using a dynamic data envelopment analysis framework that considers the effect of carry-over activities between two consecutive time periods. A robust regression analysis was then used in our second-stage analysis to identify the efficiency drivers. Results showed that new and younger NMFIs perform better than matured ones, so older NMFIs are vulnerable to competition from younger peers and thus, they are more likely to fail. Results also show that NMFIs were not severely affected by the 2008 financial crisis.

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While the term financial sustainability refers to the ability of an MFI to achieve unsubsidized, full cost recovery, outreach is taken to mean extending financial services to a large number of people (breadth of outreach) with preference towards the lower income strata of the rural poor (depth of outreach).

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Titel: Better with age? The relationship between longevity and efficiency dynamics of nonprofit microfinance institutions
verfasst von: Ayi Gavriel Ayayi
Mahinda Wijesiri
Publikationsdatum: 19.12.2017
Verlag: Springer Netherlands
Erschienen in: Quality & Quantity / Ausgabe 5/2018
Print ISSN: 0033-5177
Elektronische ISSN: 1573-7845
DOI: https://doi.org/10.1007/s11135-017-0668-3

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