Financial sustainability of microfinance institutions in sub-Saharan Africa: evidence from GMM estimates
This paper examines what determines financial sustainability among 324 microfinance institutions (MFI) in 33 sub-Saharan African countries for the period covering 2003 to 2014. Using a well-specified Generalized Method of Moments (GMM) estimation technique, the empirical results provide strong evidence that return on assets (ROA) is the major determinant of financial sustainability of microfinance institutions in sub-Saharan Africa. This significant finding suggests that MFIs’ ability to generate higher net income from their credit portfolio is the critical factor for achieving financial sustainability. The implication of these findings is that MFIs should implement robust pre-loan screening systems, which can assess the creditworthiness of borrowers. This would undoubtedly contribute to reducing the loan default rates among MFIs operating in the region.Ahlin, C., Lin, J. and Maio, M. (2011) ‘Where does microfinance flourish? Microfinance institution performance in macroeconomic context’, Journal of Development Economics 95: 105–20 <https://dx.doi.org/10.1016/j.jdeveco.2010.04.004>.
Ananya, R. (2010) Poverty Capital: Microfinance and the Making of Development, New York: Routledge.
Arellano, M. and Bover, O. (1995) ‘Another look at the instrumental variable estimation of error-components models’, Journal of Econometrics 68(1): 29–51 <https://dx.doi.org/10.1016/0304-4076(94)01642-D>.
Ayayi, A.G. and Sene, M. (2010) ‘What drives microfinance institutions’ financial sustainability?’ The Journal of Developing Areas 44(1): 303–24. <https://dx.doi.org/10.1353/jda.0.0093>.
Baltagi, B. (2008) Econometric Analysis of Panel Data (Vol. 1), Chichester, UK: John Wiley & Sons.
Banerjee, A. and Duflo, E. (2011) Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, New York: PublicAffairs.
Barr, M.S. (2005) ‘Microfinance and financial development’, Michigan Journal of International Law 26: 271. <http://repository.law.umich.edu/law_econ_archive/art46>.
Bateman, M. and Chang, H. (2012) ‘Microfinance and the illusion of development: from hubris to nemesis in thirty years’, World Economic Review 1: 13–36.
Blundell, R. and Bond, S. (1998) ‘Initial conditions and moment restrictions in dynamic panel data models’, Journal of Econometrics 87(1): 115–43 <https://dx.doi.org/10.1016/S0304-4076(98)00009-8>.
Brau, J.C. and Woller, G.M. (2004) ‘Microfinance: a comprehensive review of the existing literature’, Journal of Entrepreneurial Finance 9(1): 1–27. <http://jefsite.org/RePEc/pep/journl/jef-2004-09-1-b-brau.pdf>.
Chikalipah, S. (2017) ‘Institutional environment and microfinance performance in sub-Saharan Africa’, African Development Review 29(1): 16–27 <http://dx.doi.org/10.1111/1467-8268.12235>.
Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2007) ‘Financial performance and outreach: a global analysis of leading microbanks’, The Economic Journal 117(517): F107–33 <http://dx.doi.org/10.1111/j.1468-0297.2007.02017.x>.
Dorfleitner, G., Leidl, M., Priberny, C. and Von Mosch, J. (2013) ‘What determines microcredit interest rates?’ Applied Financial Economics 23(20): 1,579–97 <http://dx.doi.org/10.1080/09603107.2013.839860>.
Dunford, C. (2000) ‘The holy grail of microfinance: “helping the poor” and “sustainable”?’ Small Enterprise Development 11(1): 40–4 <http://dx.doi.org/10.3362/0957-1329.2000.008>.
Gonzalez, A. and Rosenberg, R. (2006) The State of Microcredit: Outreach, Profitability and Poverty, Washington, DC: MIX and CGAP.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the Newly Independent States’, World Development 33(10): 1,627–43 <http://dx.doi.org/10.1016/j.worlddev.2005.06.001>.
Hartarska, V., Shen, X. and Mersland, R. (2013) ‘Scale economies and input price elasticities in microfinance institutions’, Journal of Banking & Finance 37(1): 118–31 <https://dx.doi.org/10.1016/j.jbankfin.2012.08.004>.
Havers, M. (1996) ‘Financial sustainability in savings and credit programmes’, Development in Practice 6(2): 144–64. <https://dx.doi.org/10.1080/0961452961000157704>.
Henley, D. (2013) ‘Microfinance in Indonesia evolution and revolution, 1900–2000’, in A. Goenka and D. Henley (eds), Southeast Asia’s Credit Revolution: From Moneylenders to Microfinance, pp. 90, 173, Abingdon, UK: Routledge.
Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 39(6): 875–81 <http://dx.doi.org/10.1016/j.worlddev.2009.10.021>.
Hermes, N., Lensink, R. and Aljar, M. (2011) ‘Outreach and efficiency of microfinance institutions’, World Development 39(6): 938–48 <http://dx.doi.org/10.1016/j.worlddev.2009.10.021>.
Hollis, A. and Sweetman, A. (1998) ‘Microcredit: what can we learn from the past?’ World Development 26(10): 1,875–91 <http://dx.doi.org/10.1016/S0305-750X(98)00082-5>.
Hsiao, C. (2014) Analysis of Panel Data (Vol. 54), Cambridge, UK: Cambridge University Press.
Janda, K. and Svárovská, B. (2013) ‘Performance of microfinance investment vehicles’, Ekonomický časopis (Journal of Economics) 1(61): 47–66.
Janda, K. and Zetek, P. (2014) ‘Macroeconomic factors influencing interest rates of microfinance institutions in Latin America and the Caribbean’, Agricultural Economics–Czech 4(60): 59–173.
Kennedy, P. (2008) A Guide to Modern Econometrics, Oxford: Blackwell Publishing.
Kinde, B.A. (2012) ‘Financial sustainability of microfinance institutions (MFIs) in Ethiopia’, European Journal of Business and Management 4(15): 1–10.
Kyereboah-Coleman, A. and Osei, K.A. (2008) ‘Outreach and profitability of microfinance institutions: the role of governance’, Journal of Economic Studies 35(3): 236–48 <http://dx.doi.org/10.1108/01443580810887797>.
Magleby, K. (2007) ‘Microfranchise business models’, in J. Fairbourne, S.W. Gibson and W. G. Dyer (eds), Microfranchising: Creating Wealth at the Bottom of the Pyramid, p. 133, Cheltenham, UK: Edward Elgar.
Mallick, D. (2012) ‘Microfinance and moneylender interest rate: evidence from Bangladesh’, World Development 40(6): 1,181–9 <http://dx.doi.org/10.1016/j.worlddev.2011.12.011>.
Mersland, R. and Strøm, R.Ø. (2010) ‘Microfinance mission drift?’ World Development 38(1): 28–36 <http://dx.doi.org/10.1016/j.worlddev.2009.05.006>.
Milford, B. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, 1st edn, London: Zed Books.
Morduch, J. (1999) ‘The role of subsidies in microfinance: evidence from the Grameen Bank’, Journal of Development Economics 60: 229–48 <https://dx.doi.org/10.1016/S0304-3878(99)00042-5>.
Navajas, S., Schreiner, M., Meyer, R.L., Gonzalez-Vega, C. and Rodriguez-Meza, J. (2000) ‘Microcredit and the poorest: theory and evidence from Bolivia’, World Development 28: 333–46 <https://dx.doi.org/10.1016/S0305-750X(99)00121-7>.
Rahman, M.A. and Mazlan, A.R. (2014) ‘Determinants of financial sustainability of microfinance institutions in Bangladesh’, International Journal of Economics and Finance 6(9): 107 <http://dx.doi.org/10.5539/ijef.v6n9p107>.
Roberts, P.W. (2013) ‘The profit orientation of microfinance institutions and effective interest rates’, World Development 41: 120–31 <http://dx.doi.org/10.1016/j.worlddev.2012.05.022>.
Sapundzhieva, R. (2011) ‘Funding microfinance: a focus on debt financing’, Microfinance Bulletin 1–8.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organisations’, Savings and Development 24(4): 423–37.
Serrano-Cinca, C. and Gutiérrez-Nieto, B. (2014) ‘Microfinance, the long tail and mission drift’, International Business Review 23(1): 181–94 <http://dx.doi.org/10.1016/j.ibusrev.2013.03.006>.
Tehulu, T.A. (2013) ‘Determinants of financial sustainability of microfinance institutions in East Africa’, European Journal of Business and Management 5(17): 152–8.
Van Kirk, G. (2010) ‘The MicroConsignment Model: bridging the “last mile” of access to products and services for the rural poor’, Innovations Case Narrative: The MicroConsignment Model, innovations 5(1): 101–27.
Van Rooyen, C., Stewart, R. and De Wet, T. (2012) ‘The impact of microfinance in sub-Saharan Africa: a systematic review of the evidence’, World Development 40(11): 2249–62 <http://dx.doi.org/10.1016/j.worlddev.2012.03.012>.
Vanroose, A. and D’Espallier, B. (2013) ‘Do microfinance institutions accomplish their mission? Evidence from the relationship between traditional financial sector development and microfinance institutions’ outreach and performance’, Applied Economics 45(15): 1,965–82 <http://dx.doi.org/10.1080/00036846.2011.641932>.
Ward, K. (2012) Strategic Management Accounting, Abingdon, UK: Routledge.
Windmeijer, F. (2005) ‘A finite sample correction for the variance of linear efficient two-step GMM estimators’, Journal of Econometrics 126(1): 25–51 <https://dx.doi.org/10.1016/j.jeconom.2004.02.005>.
Woller, G. (2002) ‘The promise and peril of microfinance commercialization’, Small Enterprise Development 13(4): 12–21 <http://dx.doi.org/10.3362/0957-1329.2002.042>.
World Bank (2014) ‘Gross domestic savings (% of GDP)’ [online] <http://data.worldbank.org/indicator/NY.GDS.TOTL.ZS> [accessed 15 January 2016].
Ahlin, C., Lin, J. and Maio, M. (2011) ‘Where does microfinance flourish? Microfinance institution performance in macroeconomic context’, Journal of Development Economics 95: 105–20 <https://dx.doi.org/10.1016/j.jdeveco.2010.04.004>.
Ananya, R. (2010) Poverty Capital: Microfinance and the Making of Development, New York: Routledge.
Arellano, M. and Bover, O. (1995) ‘Another look at the instrumental variable estimation of error-components models’, Journal of Econometrics 68(1): 29–51 <https://dx.doi.org/10.1016/0304-4076(94)01642-D>.
Ayayi, A.G. and Sene, M. (2010) ‘What drives microfinance institutions’ financial sustainability?’ The Journal of Developing Areas 44(1): 303–24. <https://dx.doi.org/10.1353/jda.0.0093>.
Baltagi, B. (2008) Econometric Analysis of Panel Data (Vol. 1), Chichester, UK: John Wiley & Sons.
Banerjee, A. and Duflo, E. (2011) Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, New York: PublicAffairs.
Barr, M.S. (2005) ‘Microfinance and financial development’, Michigan Journal of International Law 26: 271. <http://repository.law.umich.edu/law_econ_archive/art46>.
Bateman, M. and Chang, H. (2012) ‘Microfinance and the illusion of development: from hubris to nemesis in thirty years’, World Economic Review 1: 13–36.
Blundell, R. and Bond, S. (1998) ‘Initial conditions and moment restrictions in dynamic panel data models’, Journal of Econometrics 87(1): 115–43 <https://dx.doi.org/10.1016/S0304-4076(98)00009-8>.
Brau, J.C. and Woller, G.M. (2004) ‘Microfinance: a comprehensive review of the existing literature’, Journal of Entrepreneurial Finance 9(1): 1–27. <http://jefsite.org/RePEc/pep/journl/jef-2004-09-1-b-brau.pdf>.
Chikalipah, S. (2017) ‘Institutional environment and microfinance performance in sub-Saharan Africa’, African Development Review 29(1): 16–27 <http://dx.doi.org/10.1111/1467-8268.12235>.
Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2007) ‘Financial performance and outreach: a global analysis of leading microbanks’, The Economic Journal 117(517): F107–33 <http://dx.doi.org/10.1111/j.1468-0297.2007.02017.x>.
Dorfleitner, G., Leidl, M., Priberny, C. and Von Mosch, J. (2013) ‘What determines microcredit interest rates?’ Applied Financial Economics 23(20): 1,579–97 <http://dx.doi.org/10.1080/09603107.2013.839860>.
Dunford, C. (2000) ‘The holy grail of microfinance: “helping the poor” and “sustainable”?’ Small Enterprise Development 11(1): 40–4 <http://dx.doi.org/10.3362/0957-1329.2000.008>.
Gonzalez, A. and Rosenberg, R. (2006) The State of Microcredit: Outreach, Profitability and Poverty, Washington, DC: MIX and CGAP.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the Newly Independent States’, World Development 33(10): 1,627–43 <http://dx.doi.org/10.1016/j.worlddev.2005.06.001>.
Hartarska, V., Shen, X. and Mersland, R. (2013) ‘Scale economies and input price elasticities in microfinance institutions’, Journal of Banking & Finance 37(1): 118–31 <https://dx.doi.org/10.1016/j.jbankfin.2012.08.004>.
Havers, M. (1996) ‘Financial sustainability in savings and credit programmes’, Development in Practice 6(2): 144–64. <https://dx.doi.org/10.1080/0961452961000157704>.
Henley, D. (2013) ‘Microfinance in Indonesia evolution and revolution, 1900–2000’, in A. Goenka and D. Henley (eds), Southeast Asia’s Credit Revolution: From Moneylenders to Microfinance, pp. 90, 173, Abingdon, UK: Routledge.
Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 39(6): 875–81 <http://dx.doi.org/10.1016/j.worlddev.2009.10.021>.
Hermes, N., Lensink, R. and Aljar, M. (2011) ‘Outreach and efficiency of microfinance institutions’, World Development 39(6): 938–48 <http://dx.doi.org/10.1016/j.worlddev.2009.10.021>.
Hollis, A. and Sweetman, A. (1998) ‘Microcredit: what can we learn from the past?’ World Development 26(10): 1,875–91 <http://dx.doi.org/10.1016/S0305-750X(98)00082-5>.
Hsiao, C. (2014) Analysis of Panel Data (Vol. 54), Cambridge, UK: Cambridge University Press.
Janda, K. and Svárovská, B. (2013) ‘Performance of microfinance investment vehicles’, Ekonomický časopis (Journal of Economics) 1(61): 47–66.
Janda, K. and Zetek, P. (2014) ‘Macroeconomic factors influencing interest rates of microfinance institutions in Latin America and the Caribbean’, Agricultural Economics–Czech 4(60): 59–173.
Kennedy, P. (2008) A Guide to Modern Econometrics, Oxford: Blackwell Publishing.
Kinde, B.A. (2012) ‘Financial sustainability of microfinance institutions (MFIs) in Ethiopia’, European Journal of Business and Management 4(15): 1–10.
Kyereboah-Coleman, A. and Osei, K.A. (2008) ‘Outreach and profitability of microfinance institutions: the role of governance’, Journal of Economic Studies 35(3): 236–48 <http://dx.doi.org/10.1108/01443580810887797>.
Magleby, K. (2007) ‘Microfranchise business models’, in J. Fairbourne, S.W. Gibson and W. G. Dyer (eds), Microfranchising: Creating Wealth at the Bottom of the Pyramid, p. 133, Cheltenham, UK: Edward Elgar.
Mallick, D. (2012) ‘Microfinance and moneylender interest rate: evidence from Bangladesh’, World Development 40(6): 1,181–9 <http://dx.doi.org/10.1016/j.worlddev.2011.12.011>.
Mersland, R. and Strøm, R.Ø. (2010) ‘Microfinance mission drift?’ World Development 38(1): 28–36 <http://dx.doi.org/10.1016/j.worlddev.2009.05.006>.
Milford, B. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, 1st edn, London: Zed Books.
Morduch, J. (1999) ‘The role of subsidies in microfinance: evidence from the Grameen Bank’, Journal of Development Economics 60: 229–48 <https://dx.doi.org/10.1016/S0304-3878(99)00042-5>.
Navajas, S., Schreiner, M., Meyer, R.L., Gonzalez-Vega, C. and Rodriguez-Meza, J. (2000) ‘Microcredit and the poorest: theory and evidence from Bolivia’, World Development 28: 333–46 <https://dx.doi.org/10.1016/S0305-750X(99)00121-7>.
Rahman, M.A. and Mazlan, A.R. (2014) ‘Determinants of financial sustainability of microfinance institutions in Bangladesh’, International Journal of Economics and Finance 6(9): 107 <http://dx.doi.org/10.5539/ijef.v6n9p107>.
Roberts, P.W. (2013) ‘The profit orientation of microfinance institutions and effective interest rates’, World Development 41: 120–31 <http://dx.doi.org/10.1016/j.worlddev.2012.05.022>.
Sapundzhieva, R. (2011) ‘Funding microfinance: a focus on debt financing’, Microfinance Bulletin 1–8.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organisations’, Savings and Development 24(4): 423–37.
Serrano-Cinca, C. and Gutiérrez-Nieto, B. (2014) ‘Microfinance, the long tail and mission drift’, International Business Review 23(1): 181–94 <http://dx.doi.org/10.1016/j.ibusrev.2013.03.006>.
Tehulu, T.A. (2013) ‘Determinants of financial sustainability of microfinance institutions in East Africa’, European Journal of Business and Management 5(17): 152–8.
Van Kirk, G. (2010) ‘The MicroConsignment Model: bridging the “last mile” of access to products and services for the rural poor’, Innovations Case Narrative: The MicroConsignment Model, innovations 5(1): 101–27.
Van Rooyen, C., Stewart, R. and De Wet, T. (2012) ‘The impact of microfinance in sub-Saharan Africa: a systematic review of the evidence’, World Development 40(11): 2249–62 <http://dx.doi.org/10.1016/j.worlddev.2012.03.012>.
Vanroose, A. and D’Espallier, B. (2013) ‘Do microfinance institutions accomplish their mission? Evidence from the relationship between traditional financial sector development and microfinance institutions’ outreach and performance’, Applied Economics 45(15): 1,965–82 <http://dx.doi.org/10.1080/00036846.2011.641932>.
Ward, K. (2012) Strategic Management Accounting, Abingdon, UK: Routledge.
Windmeijer, F. (2005) ‘A finite sample correction for the variance of linear efficient two-step GMM estimators’, Journal of Econometrics 126(1): 25–51 <https://dx.doi.org/10.1016/j.jeconom.2004.02.005>.
Woller, G. (2002) ‘The promise and peril of microfinance commercialization’, Small Enterprise Development 13(4): 12–21 <http://dx.doi.org/10.3362/0957-1329.2002.042>.
World Bank (2014) ‘Gross domestic savings (% of GDP)’ [online] <http://data.worldbank.org/indicator/NY.GDS.TOTL.ZS> [accessed 15 January 2016].
Ahlin, C., Lin, J. and Maio, M. (2011) ‘Where does microfinance flourish? Microfinance institution performance in macroeconomic context’, Journal of Development Economics 95: 105–20 <https://dx.doi.org/10.1016/j.jdeveco.2010.04.004>.
Ananya, R. (2010) Poverty Capital: Microfinance and the Making of Development, New York: Routledge.
Arellano, M. and Bover, O. (1995) ‘Another look at the instrumental variable estimation of error-components models’, Journal of Econometrics 68(1): 29–51 <https://dx.doi.org/10.1016/0304-4076(94)01642-D>.
Ayayi, A.G. and Sene, M. (2010) ‘What drives microfinance institutions’ financial sustainability?’ The Journal of Developing Areas 44(1): 303–24. <https://dx.doi.org/10.1353/jda.0.0093>.
Baltagi, B. (2008) Econometric Analysis of Panel Data (Vol. 1), Chichester, UK: John Wiley & Sons.
Banerjee, A. and Duflo, E. (2011) Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, New York: PublicAffairs.
Barr, M.S. (2005) ‘Microfinance and financial development’, Michigan Journal of International Law 26: 271. <http://repository.law.umich.edu/law_econ_archive/art46>.
Bateman, M. and Chang, H. (2012) ‘Microfinance and the illusion of development: from hubris to nemesis in thirty years’, World Economic Review 1: 13–36.
Blundell, R. and Bond, S. (1998) ‘Initial conditions and moment restrictions in dynamic panel data models’, Journal of Econometrics 87(1): 115–43 <https://dx.doi.org/10.1016/S0304-4076(98)00009-8>.
Brau, J.C. and Woller, G.M. (2004) ‘Microfinance: a comprehensive review of the existing literature’, Journal of Entrepreneurial Finance 9(1): 1–27. <http://jefsite.org/RePEc/pep/journl/jef-2004-09-1-b-brau.pdf>.
Chikalipah, S. (2017) ‘Institutional environment and microfinance performance in sub-Saharan Africa’, African Development Review 29(1): 16–27 <http://dx.doi.org/10.1111/1467-8268.12235>.
Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2007) ‘Financial performance and outreach: a global analysis of leading microbanks’, The Economic Journal 117(517): F107–33 <http://dx.doi.org/10.1111/j.1468-0297.2007.02017.x>.
Dorfleitner, G., Leidl, M., Priberny, C. and Von Mosch, J. (2013) ‘What determines microcredit interest rates?’ Applied Financial Economics 23(20): 1,579–97 <http://dx.doi.org/10.1080/09603107.2013.839860>.
Dunford, C. (2000) ‘The holy grail of microfinance: “helping the poor” and “sustainable”?’ Small Enterprise Development 11(1): 40–4 <http://dx.doi.org/10.3362/0957-1329.2000.008>.
Gonzalez, A. and Rosenberg, R. (2006) The State of Microcredit: Outreach, Profitability and Poverty, Washington, DC: MIX and CGAP.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the Newly Independent States’, World Development 33(10): 1,627–43 <http://dx.doi.org/10.1016/j.worlddev.2005.06.001>.
Hartarska, V., Shen, X. and Mersland, R. (2013) ‘Scale economies and input price elasticities in microfinance institutions’, Journal of Banking & Finance 37(1): 118–31 <https://dx.doi.org/10.1016/j.jbankfin.2012.08.004>.
Havers, M. (1996) ‘Financial sustainability in savings and credit programmes’, Development in Practice 6(2): 144–64. <https://dx.doi.org/10.1080/0961452961000157704>.
Henley, D. (2013) ‘Microfinance in Indonesia evolution and revolution, 1900–2000’, in A. Goenka and D. Henley (eds), Southeast Asia’s Credit Revolution: From Moneylenders to Microfinance, pp. 90, 173, Abingdon, UK: Routledge.
Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 39(6): 875–81 <http://dx.doi.org/10.1016/j.worlddev.2009.10.021>.
Hermes, N., Lensink, R. and Aljar, M. (2011) ‘Outreach and efficiency of microfinance institutions’, World Development 39(6): 938–48 <http://dx.doi.org/10.1016/j.worlddev.2009.10.021>.
Hollis, A. and Sweetman, A. (1998) ‘Microcredit: what can we learn from the past?’ World Development 26(10): 1,875–91 <http://dx.doi.org/10.1016/S0305-750X(98)00082-5>.
Hsiao, C. (2014) Analysis of Panel Data (Vol. 54), Cambridge, UK: Cambridge University Press.
Janda, K. and Svárovská, B. (2013) ‘Performance of microfinance investment vehicles’, Ekonomický časopis (Journal of Economics) 1(61): 47–66.
Janda, K. and Zetek, P. (2014) ‘Macroeconomic factors influencing interest rates of microfinance institutions in Latin America and the Caribbean’, Agricultural Economics–Czech 4(60): 59–173.
Kennedy, P. (2008) A Guide to Modern Econometrics, Oxford: Blackwell Publishing.
Kinde, B.A. (2012) ‘Financial sustainability of microfinance institutions (MFIs) in Ethiopia’, European Journal of Business and Management 4(15): 1–10.
Kyereboah-Coleman, A. and Osei, K.A. (2008) ‘Outreach and profitability of microfinance institutions: the role of governance’, Journal of Economic Studies 35(3): 236–48 <http://dx.doi.org/10.1108/01443580810887797>.
Magleby, K. (2007) ‘Microfranchise business models’, in J. Fairbourne, S.W. Gibson and W. G. Dyer (eds), Microfranchising: Creating Wealth at the Bottom of the Pyramid, p. 133, Cheltenham, UK: Edward Elgar.
Mallick, D. (2012) ‘Microfinance and moneylender interest rate: evidence from Bangladesh’, World Development 40(6): 1,181–9 <http://dx.doi.org/10.1016/j.worlddev.2011.12.011>.
Mersland, R. and Strøm, R.Ø. (2010) ‘Microfinance mission drift?’ World Development 38(1): 28–36 <http://dx.doi.org/10.1016/j.worlddev.2009.05.006>.
Milford, B. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, 1st edn, London: Zed Books.
Morduch, J. (1999) ‘The role of subsidies in microfinance: evidence from the Grameen Bank’, Journal of Development Economics 60: 229–48 <https://dx.doi.org/10.1016/S0304-3878(99)00042-5>.
Navajas, S., Schreiner, M., Meyer, R.L., Gonzalez-Vega, C. and Rodriguez-Meza, J. (2000) ‘Microcredit and the poorest: theory and evidence from Bolivia’, World Development 28: 333–46 <https://dx.doi.org/10.1016/S0305-750X(99)00121-7>.
Rahman, M.A. and Mazlan, A.R. (2014) ‘Determinants of financial sustainability of microfinance institutions in Bangladesh’, International Journal of Economics and Finance 6(9): 107 <http://dx.doi.org/10.5539/ijef.v6n9p107>.
Roberts, P.W. (2013) ‘The profit orientation of microfinance institutions and effective interest rates’, World Development 41: 120–31 <http://dx.doi.org/10.1016/j.worlddev.2012.05.022>.
Sapundzhieva, R. (2011) ‘Funding microfinance: a focus on debt financing’, Microfinance Bulletin 1–8.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organisations’, Savings and Development 24(4): 423–37.
Serrano-Cinca, C. and Gutiérrez-Nieto, B. (2014) ‘Microfinance, the long tail and mission drift’, International Business Review 23(1): 181–94 <http://dx.doi.org/10.1016/j.ibusrev.2013.03.006>.
Tehulu, T.A. (2013) ‘Determinants of financial sustainability of microfinance institutions in East Africa’, European Journal of Business and Management 5(17): 152–8.
Van Kirk, G. (2010) ‘The MicroConsignment Model: bridging the “last mile” of access to products and services for the rural poor’, Innovations Case Narrative: The MicroConsignment Model, innovations 5(1): 101–27.
Van Rooyen, C., Stewart, R. and De Wet, T. (2012) ‘The impact of microfinance in sub-Saharan Africa: a systematic review of the evidence’, World Development 40(11): 2249–62 <http://dx.doi.org/10.1016/j.worlddev.2012.03.012>.
Vanroose, A. and D’Espallier, B. (2013) ‘Do microfinance institutions accomplish their mission? Evidence from the relationship between traditional financial sector development and microfinance institutions’ outreach and performance’, Applied Economics 45(15): 1,965–82 <http://dx.doi.org/10.1080/00036846.2011.641932>.
Ward, K. (2012) Strategic Management Accounting, Abingdon, UK: Routledge.
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