Factors affecting the financing cost of microfinance institutions: panel evidence
Mahfuzur Rahman | Aslam Mia | Izlin Binti Ismail | Che Ruhana Isa
Microfinance institutions (MFIs) aim to minimize their operating costs as a way to provide affordable services to the poor and attain financial sustainability for long-term economic viability. To contribute to existing literature, this paper examines the factors affecting the financing cost of MFIs. The study features a balanced panel data of 169 MFIs from Bangladesh’s microfinance industry, covering the period from 2009 to 2014. Based on the empirical results, internal sources of funds, such as clients’ savings and cumulative surplus, have a significant negative effect on the financing cost of MFIs. On the other hand, certain external sources of funds, notably donations and funds from government apex bodies, serve to reduce financing cost, which reinforces the efficiency and effectiveness of external support to the microfinance industry. This study suggests that MFIs should rely on internally generated funds and reduce dependency on commercial debt.Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28: 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.
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://doi.org/10.1016/j.jdeveco.2010.04.004>.
Allet, M. and Hudon, M. (2015) ‘Green microfinance: characteristics of microfinance institutions involved in environmental management’, Journal of Business Ethics 126: 395–414 <http://dx.doi.org/10.1007/s10551-013-1942-5>.
Ananth, B. (2005) ‘Financing microfinance: the ICICI Bank partnership model’, Small Enterprise Development 16: 57–65 <https://doi.org/10.3362/0957-1329.2005.009>.
Berger, A.N. and Di Patti, E.B. (2006) ‘Capital structure and firm performance: a new approach to testing agency theory and an application to the banking industry’, Journal of Banking & Finance 30: 1065–102 <https://doi.org/10.1016/j.jbankfin.2005.05.015>.
Bogan, V.L. (2012) ‘Capital structure and sustainability: an empirical study of microfinance institutions’, Review of Economics and Statistics 94: 1045–58 <https://doi.org/10.1162/REST_a_00223>.
Britzelmaier, B., Kraus, P. and Xu, Y. (2013) ‘Microfinance institutions in China: development and challenges to their sustainability’, Strategic Change 22: 67–78 <https://doi.org/10.1002/jsc.1922>.
Chikalipah, S. (2017) ‘Financial sustainability of microfinance institutions in sub-Saharan Africa: evidence from GMM estimates’, Enterprise Development and Microfinance 28: 182–99 <https://doi.org/10.3362/1755-1986.16-00023>.
Crabb, P.R. (2004) ‘Foreign exchange risk management practices of microfinance institutions’, Journal of Microfinance/ESR Review 6: 51–63.
De Mel, S., McKenzie, D. and Woodruff, C. (2008) ‘Returns to capital in microenterprises: evidence from a field experiment’, The Quarterly Journal of Economics 123: 1329–72.
Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach, Boston, MA: Pitman.
Gibson, A.B. (2012) ‘Determinants of operational sustainability of microfinance institutions in Kenya’, unpublished MBA thesis, School of Business, University of Nairobi.
Harelimana, J.B. (2017) ‘The determinants of financial and operational sustainability of microfinance institutions: case study of Clecam-Ejoheza Ltd’, Global Journal of Management and Business Research 14: 33–43.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the newly independent states’, World Development 33: 1627–43 <https://doi.org/10.1016/j.worlddev.2005.06.001>.
Hausman, J.A. (1978) ‘Specification tests in econometrics’, Econometrica: Journal of the Econometric Society 40: 1251–71.
Hill, C.W.L. and Jones, T.M. (1992) ‘Stakeholder-agency theory’, Journal of Management Studies 29: 131–54.
Islam, Z., Porporato, M. and Waweru, N. (2014) ‘Cost structure and financial sustainability of microfinance institutions: the potential effects of interest rate cap in Bangladesh’, International Journal of Financial Services Management 7: 54–72 <https://doi.org/10.1504/IJFSM.2014.062292>.
Johnson, S. and Rogaly, B. (1997) Microfinance and Poverty Reduction, Oxford, UK: Oxfam.
Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: the role for decentralized services’, Small Enterprise Development 17: 41–53 <https://doi.org/10.3362/0957-1329.2006.030>.
Kabeer, N. (2005) ‘Is microfinance a “magic bullet” for women’s empowerment? Analysis of findings from South Asia’, Economic and Political Weekly, 40: 4709–18.
Lislevand, C.J. (2012) The Effect of Capital Structure on Microfinance Institutions Performance, unpublished Master’s thesis, University of Agder, Norway.
Mia, M.A. (2017) ‘Determinants of total factor productivity in microfinance institutions: evidence from Bangladesh’, in D. Cumming, Y. Dong, W. Hou, and B. Sen (eds), Microfinance for Entrepreneurial Development: Sustainability and Inclusion in Emerging Markets, Cham, Switzerland: Springer International Publishing <https://doi.org/10.1007/978-3-319-62111-1_10>.
Mia, M.A. and Lee, H-A. (2017) ‘Mission drift and ethical crisis in microfinance institutions: what matters?’ Journal of Cleaner Production 164: 102–14 <https://doi.org/10.1016/j.jclepro. 2017.06.176>.
Mosley, P. (2001) ‘Microfinance and poverty in Bolivia’, Journal of Development Studies 37: 101–32 <https://doi.org/10.1080/00220380412331322061>.
Mosley, P. and Rock, J. (2004) ‘Microfinance, labour markets and poverty in Africa: a study of six institutions’, Journal of International Development 16: 467–500 <https://doi.org/10.1002/jid.1090>.
Microcredit Regulatory Authority (MRA) (2015) NGO-MFIs in Bangladesh: A Statistical Publication, Dhaka, Bangladesh: MRA.
O’Brien, R.M. (2007) ‘A caution regarding rules of thumb for variance inflation factors’, Quality & Quantity 41: 673–90 <https://doi.org/10.1007/s11135-006-9018-6>.
Rauf, S.A. and Mahmood, T. (2009) ‘Growth and performance of microfinance in Pakistan’, Pakistan Economic and Social Review 47: 99–122.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organizations’, Savings and Development 24: 423–37.
Shahidullah, A. and Haque, C.E. (2015) ‘Green microfinance strategy for entrepreneurial transformation: validating a pattern towards sustainability’, Enterprise Development and Microfinance 26: 325–42 <https://doi.org/10.3362/1755-1986.2015.027>.
Swedish International Development Cooperation Agency (SIDA) (1997) Financial Sector Development [pdf], Stockholm, Sweden: Department for Infrastructure and Economic Cooperation, SIDA <https://www.sida.se/contentassets/d8052e1502b7441abb0e10e67e621c2f/13867.pdf> [accessed 7 May 2018].
Tchuigoua, H.T. (2015) ‘Capital structure of microfinance institutions’, Journal of Financial Services Research 47: 313–40 <https://doi.org/10.1007/s10693-013-0190-2>.
Torres-Reyna, O. (2007) Panel Data Analysis Fixed and Random Effects using Stata (v. 4.2), Princeton, NJ: Princeton University.
Van Elteren, A. (2007) Environmental and Social Risk Management and Added Value at MFIs and MFI Funds: The FMO Approach, The Hague Netherlands: Netherlands Development Finance Company (FMO).
Waweru, N. and Spraakman, G. (2012) ‘The use of performance measures: case studies from the microfinance sector in Kenya’, Qualitative Research in Accounting & Management 9: 44–65 <https://doi.org/10.1108/11766091211216105>.
Wisniwski, S. (1999) Microsavings Compared to Other Sources of Funds, Eschborn, Germany: Consultative Group to Assist the Poor.
Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28: 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.
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://doi.org/10.1016/j.jdeveco.2010.04.004>.
Allet, M. and Hudon, M. (2015) ‘Green microfinance: characteristics of microfinance institutions involved in environmental management’, Journal of Business Ethics 126: 395–414 <http://dx.doi.org/10.1007/s10551-013-1942-5>.
Ananth, B. (2005) ‘Financing microfinance: the ICICI Bank partnership model’, Small Enterprise Development 16: 57–65 <https://doi.org/10.3362/0957-1329.2005.009>.
Berger, A.N. and Di Patti, E.B. (2006) ‘Capital structure and firm performance: a new approach to testing agency theory and an application to the banking industry’, Journal of Banking & Finance 30: 1065–102 <https://doi.org/10.1016/j.jbankfin.2005.05.015>.
Bogan, V.L. (2012) ‘Capital structure and sustainability: an empirical study of microfinance institutions’, Review of Economics and Statistics 94: 1045–58 <https://doi.org/10.1162/REST_a_00223>.
Britzelmaier, B., Kraus, P. and Xu, Y. (2013) ‘Microfinance institutions in China: development and challenges to their sustainability’, Strategic Change 22: 67–78 <https://doi.org/10.1002/jsc.1922>.
Chikalipah, S. (2017) ‘Financial sustainability of microfinance institutions in sub-Saharan Africa: evidence from GMM estimates’, Enterprise Development and Microfinance 28: 182–99 <https://doi.org/10.3362/1755-1986.16-00023>.
Crabb, P.R. (2004) ‘Foreign exchange risk management practices of microfinance institutions’, Journal of Microfinance/ESR Review 6: 51–63.
De Mel, S., McKenzie, D. and Woodruff, C. (2008) ‘Returns to capital in microenterprises: evidence from a field experiment’, The Quarterly Journal of Economics 123: 1329–72.
Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach, Boston, MA: Pitman.
Gibson, A.B. (2012) ‘Determinants of operational sustainability of microfinance institutions in Kenya’, unpublished MBA thesis, School of Business, University of Nairobi.
Harelimana, J.B. (2017) ‘The determinants of financial and operational sustainability of microfinance institutions: case study of Clecam-Ejoheza Ltd’, Global Journal of Management and Business Research 14: 33–43.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the newly independent states’, World Development 33: 1627–43 <https://doi.org/10.1016/j.worlddev.2005.06.001>.
Hausman, J.A. (1978) ‘Specification tests in econometrics’, Econometrica: Journal of the Econometric Society 40: 1251–71.
Hill, C.W.L. and Jones, T.M. (1992) ‘Stakeholder-agency theory’, Journal of Management Studies 29: 131–54.
Islam, Z., Porporato, M. and Waweru, N. (2014) ‘Cost structure and financial sustainability of microfinance institutions: the potential effects of interest rate cap in Bangladesh’, International Journal of Financial Services Management 7: 54–72 <https://doi.org/10.1504/IJFSM.2014.062292>.
Johnson, S. and Rogaly, B. (1997) Microfinance and Poverty Reduction, Oxford, UK: Oxfam.
Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: the role for decentralized services’, Small Enterprise Development 17: 41–53 <https://doi.org/10.3362/0957-1329.2006.030>.
Kabeer, N. (2005) ‘Is microfinance a “magic bullet” for women’s empowerment? Analysis of findings from South Asia’, Economic and Political Weekly, 40: 4709–18.
Lislevand, C.J. (2012) The Effect of Capital Structure on Microfinance Institutions Performance, unpublished Master’s thesis, University of Agder, Norway.
Mia, M.A. (2017) ‘Determinants of total factor productivity in microfinance institutions: evidence from Bangladesh’, in D. Cumming, Y. Dong, W. Hou, and B. Sen (eds), Microfinance for Entrepreneurial Development: Sustainability and Inclusion in Emerging Markets, Cham, Switzerland: Springer International Publishing <https://doi.org/10.1007/978-3-319-62111-1_10>.
Mia, M.A. and Lee, H-A. (2017) ‘Mission drift and ethical crisis in microfinance institutions: what matters?’ Journal of Cleaner Production 164: 102–14 <https://doi.org/10.1016/j.jclepro. 2017.06.176>.
Mosley, P. (2001) ‘Microfinance and poverty in Bolivia’, Journal of Development Studies 37: 101–32 <https://doi.org/10.1080/00220380412331322061>.
Mosley, P. and Rock, J. (2004) ‘Microfinance, labour markets and poverty in Africa: a study of six institutions’, Journal of International Development 16: 467–500 <https://doi.org/10.1002/jid.1090>.
Microcredit Regulatory Authority (MRA) (2015) NGO-MFIs in Bangladesh: A Statistical Publication, Dhaka, Bangladesh: MRA.
O’Brien, R.M. (2007) ‘A caution regarding rules of thumb for variance inflation factors’, Quality & Quantity 41: 673–90 <https://doi.org/10.1007/s11135-006-9018-6>.
Rauf, S.A. and Mahmood, T. (2009) ‘Growth and performance of microfinance in Pakistan’, Pakistan Economic and Social Review 47: 99–122.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organizations’, Savings and Development 24: 423–37.
Shahidullah, A. and Haque, C.E. (2015) ‘Green microfinance strategy for entrepreneurial transformation: validating a pattern towards sustainability’, Enterprise Development and Microfinance 26: 325–42 <https://doi.org/10.3362/1755-1986.2015.027>.
Swedish International Development Cooperation Agency (SIDA) (1997) Financial Sector Development [pdf], Stockholm, Sweden: Department for Infrastructure and Economic Cooperation, SIDA <https://www.sida.se/contentassets/d8052e1502b7441abb0e10e67e621c2f/13867.pdf> [accessed 7 May 2018].
Tchuigoua, H.T. (2015) ‘Capital structure of microfinance institutions’, Journal of Financial Services Research 47: 313–40 <https://doi.org/10.1007/s10693-013-0190-2>.
Torres-Reyna, O. (2007) Panel Data Analysis Fixed and Random Effects using Stata (v. 4.2), Princeton, NJ: Princeton University.
Van Elteren, A. (2007) Environmental and Social Risk Management and Added Value at MFIs and MFI Funds: The FMO Approach, The Hague Netherlands: Netherlands Development Finance Company (FMO).
Waweru, N. and Spraakman, G. (2012) ‘The use of performance measures: case studies from the microfinance sector in Kenya’, Qualitative Research in Accounting & Management 9: 44–65 <https://doi.org/10.1108/11766091211216105>.
Wisniwski, S. (1999) Microsavings Compared to Other Sources of Funds, Eschborn, Germany: Consultative Group to Assist the Poor.
Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28: 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.
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://doi.org/10.1016/j.jdeveco.2010.04.004>.
Allet, M. and Hudon, M. (2015) ‘Green microfinance: characteristics of microfinance institutions involved in environmental management’, Journal of Business Ethics 126: 395–414 <http://dx.doi.org/10.1007/s10551-013-1942-5>.
Ananth, B. (2005) ‘Financing microfinance: the ICICI Bank partnership model’, Small Enterprise Development 16: 57–65 <https://doi.org/10.3362/0957-1329.2005.009>.
Berger, A.N. and Di Patti, E.B. (2006) ‘Capital structure and firm performance: a new approach to testing agency theory and an application to the banking industry’, Journal of Banking & Finance 30: 1065–102 <https://doi.org/10.1016/j.jbankfin.2005.05.015>.
Bogan, V.L. (2012) ‘Capital structure and sustainability: an empirical study of microfinance institutions’, Review of Economics and Statistics 94: 1045–58 <https://doi.org/10.1162/REST_a_00223>.
Britzelmaier, B., Kraus, P. and Xu, Y. (2013) ‘Microfinance institutions in China: development and challenges to their sustainability’, Strategic Change 22: 67–78 <https://doi.org/10.1002/jsc.1922>.
Chikalipah, S. (2017) ‘Financial sustainability of microfinance institutions in sub-Saharan Africa: evidence from GMM estimates’, Enterprise Development and Microfinance 28: 182–99 <https://doi.org/10.3362/1755-1986.16-00023>.
Crabb, P.R. (2004) ‘Foreign exchange risk management practices of microfinance institutions’, Journal of Microfinance/ESR Review 6: 51–63.
De Mel, S., McKenzie, D. and Woodruff, C. (2008) ‘Returns to capital in microenterprises: evidence from a field experiment’, The Quarterly Journal of Economics 123: 1329–72.
Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach, Boston, MA: Pitman.
Gibson, A.B. (2012) ‘Determinants of operational sustainability of microfinance institutions in Kenya’, unpublished MBA thesis, School of Business, University of Nairobi.
Harelimana, J.B. (2017) ‘The determinants of financial and operational sustainability of microfinance institutions: case study of Clecam-Ejoheza Ltd’, Global Journal of Management and Business Research 14: 33–43.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the newly independent states’, World Development 33: 1627–43 <https://doi.org/10.1016/j.worlddev.2005.06.001>.
Hausman, J.A. (1978) ‘Specification tests in econometrics’, Econometrica: Journal of the Econometric Society 40: 1251–71.
Hill, C.W.L. and Jones, T.M. (1992) ‘Stakeholder-agency theory’, Journal of Management Studies 29: 131–54.
Islam, Z., Porporato, M. and Waweru, N. (2014) ‘Cost structure and financial sustainability of microfinance institutions: the potential effects of interest rate cap in Bangladesh’, International Journal of Financial Services Management 7: 54–72 <https://doi.org/10.1504/IJFSM.2014.062292>.
Johnson, S. and Rogaly, B. (1997) Microfinance and Poverty Reduction, Oxford, UK: Oxfam.
Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: the role for decentralized services’, Small Enterprise Development 17: 41–53 <https://doi.org/10.3362/0957-1329.2006.030>.
Kabeer, N. (2005) ‘Is microfinance a “magic bullet” for women’s empowerment? Analysis of findings from South Asia’, Economic and Political Weekly, 40: 4709–18.
Lislevand, C.J. (2012) The Effect of Capital Structure on Microfinance Institutions Performance, unpublished Master’s thesis, University of Agder, Norway.
Mia, M.A. (2017) ‘Determinants of total factor productivity in microfinance institutions: evidence from Bangladesh’, in D. Cumming, Y. Dong, W. Hou, and B. Sen (eds), Microfinance for Entrepreneurial Development: Sustainability and Inclusion in Emerging Markets, Cham, Switzerland: Springer International Publishing <https://doi.org/10.1007/978-3-319-62111-1_10>.
Mia, M.A. and Lee, H-A. (2017) ‘Mission drift and ethical crisis in microfinance institutions: what matters?’ Journal of Cleaner Production 164: 102–14 <https://doi.org/10.1016/j.jclepro. 2017.06.176>.
Mosley, P. (2001) ‘Microfinance and poverty in Bolivia’, Journal of Development Studies 37: 101–32 <https://doi.org/10.1080/00220380412331322061>.
Mosley, P. and Rock, J. (2004) ‘Microfinance, labour markets and poverty in Africa: a study of six institutions’, Journal of International Development 16: 467–500 <https://doi.org/10.1002/jid.1090>.
Microcredit Regulatory Authority (MRA) (2015) NGO-MFIs in Bangladesh: A Statistical Publication, Dhaka, Bangladesh: MRA.
O’Brien, R.M. (2007) ‘A caution regarding rules of thumb for variance inflation factors’, Quality & Quantity 41: 673–90 <https://doi.org/10.1007/s11135-006-9018-6>.
Rauf, S.A. and Mahmood, T. (2009) ‘Growth and performance of microfinance in Pakistan’, Pakistan Economic and Social Review 47: 99–122.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organizations’, Savings and Development 24: 423–37.
Shahidullah, A. and Haque, C.E. (2015) ‘Green microfinance strategy for entrepreneurial transformation: validating a pattern towards sustainability’, Enterprise Development and Microfinance 26: 325–42 <https://doi.org/10.3362/1755-1986.2015.027>.
Swedish International Development Cooperation Agency (SIDA) (1997) Financial Sector Development [pdf], Stockholm, Sweden: Department for Infrastructure and Economic Cooperation, SIDA <https://www.sida.se/contentassets/d8052e1502b7441abb0e10e67e621c2f/13867.pdf> [accessed 7 May 2018].
Tchuigoua, H.T. (2015) ‘Capital structure of microfinance institutions’, Journal of Financial Services Research 47: 313–40 <https://doi.org/10.1007/s10693-013-0190-2>.
Torres-Reyna, O. (2007) Panel Data Analysis Fixed and Random Effects using Stata (v. 4.2), Princeton, NJ: Princeton University.
Van Elteren, A. (2007) Environmental and Social Risk Management and Added Value at MFIs and MFI Funds: The FMO Approach, The Hague Netherlands: Netherlands Development Finance Company (FMO).
Waweru, N. and Spraakman, G. (2012) ‘The use of performance measures: case studies from the microfinance sector in Kenya’, Qualitative Research in Accounting & Management 9: 44–65 <https://doi.org/10.1108/11766091211216105>.
Wisniwski, S. (1999) Microsavings Compared to Other Sources of Funds, Eschborn, Germany: Consultative Group to Assist the Poor.
Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28: 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.
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://doi.org/10.1016/j.jdeveco.2010.04.004>.
Allet, M. and Hudon, M. (2015) ‘Green microfinance: characteristics of microfinance institutions involved in environmental management’, Journal of Business Ethics 126: 395–414 <http://dx.doi.org/10.1007/s10551-013-1942-5>.
Ananth, B. (2005) ‘Financing microfinance: the ICICI Bank partnership model’, Small Enterprise Development 16: 57–65 <https://doi.org/10.3362/0957-1329.2005.009>.
Berger, A.N. and Di Patti, E.B. (2006) ‘Capital structure and firm performance: a new approach to testing agency theory and an application to the banking industry’, Journal of Banking & Finance 30: 1065–102 <https://doi.org/10.1016/j.jbankfin.2005.05.015>.
Bogan, V.L. (2012) ‘Capital structure and sustainability: an empirical study of microfinance institutions’, Review of Economics and Statistics 94: 1045–58 <https://doi.org/10.1162/REST_a_00223>.
Britzelmaier, B., Kraus, P. and Xu, Y. (2013) ‘Microfinance institutions in China: development and challenges to their sustainability’, Strategic Change 22: 67–78 <https://doi.org/10.1002/jsc.1922>.
Chikalipah, S. (2017) ‘Financial sustainability of microfinance institutions in sub-Saharan Africa: evidence from GMM estimates’, Enterprise Development and Microfinance 28: 182–99 <https://doi.org/10.3362/1755-1986.16-00023>.
Crabb, P.R. (2004) ‘Foreign exchange risk management practices of microfinance institutions’, Journal of Microfinance/ESR Review 6: 51–63.
De Mel, S., McKenzie, D. and Woodruff, C. (2008) ‘Returns to capital in microenterprises: evidence from a field experiment’, The Quarterly Journal of Economics 123: 1329–72.
Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach, Boston, MA: Pitman.
Gibson, A.B. (2012) ‘Determinants of operational sustainability of microfinance institutions in Kenya’, unpublished MBA thesis, School of Business, University of Nairobi.
Harelimana, J.B. (2017) ‘The determinants of financial and operational sustainability of microfinance institutions: case study of Clecam-Ejoheza Ltd’, Global Journal of Management and Business Research 14: 33–43.
Hartarska, V. (2005) ‘Governance and performance of microfinance institutions in Central and Eastern Europe and the newly independent states’, World Development 33: 1627–43 <https://doi.org/10.1016/j.worlddev.2005.06.001>.
Hausman, J.A. (1978) ‘Specification tests in econometrics’, Econometrica: Journal of the Econometric Society 40: 1251–71.
Hill, C.W.L. and Jones, T.M. (1992) ‘Stakeholder-agency theory’, Journal of Management Studies 29: 131–54.
Islam, Z., Porporato, M. and Waweru, N. (2014) ‘Cost structure and financial sustainability of microfinance institutions: the potential effects of interest rate cap in Bangladesh’, International Journal of Financial Services Management 7: 54–72 <https://doi.org/10.1504/IJFSM.2014.062292>.
Johnson, S. and Rogaly, B. (1997) Microfinance and Poverty Reduction, Oxford, UK: Oxfam.
Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: the role for decentralized services’, Small Enterprise Development 17: 41–53 <https://doi.org/10.3362/0957-1329.2006.030>.
Kabeer, N. (2005) ‘Is microfinance a “magic bullet” for women’s empowerment? Analysis of findings from South Asia’, Economic and Political Weekly, 40: 4709–18.
Lislevand, C.J. (2012) The Effect of Capital Structure on Microfinance Institutions Performance, unpublished Master’s thesis, University of Agder, Norway.
Mia, M.A. (2017) ‘Determinants of total factor productivity in microfinance institutions: evidence from Bangladesh’, in D. Cumming, Y. Dong, W. Hou, and B. Sen (eds), Microfinance for Entrepreneurial Development: Sustainability and Inclusion in Emerging Markets, Cham, Switzerland: Springer International Publishing <https://doi.org/10.1007/978-3-319-62111-1_10>.
Mia, M.A. and Lee, H-A. (2017) ‘Mission drift and ethical crisis in microfinance institutions: what matters?’ Journal of Cleaner Production 164: 102–14 <https://doi.org/10.1016/j.jclepro. 2017.06.176>.
Mosley, P. (2001) ‘Microfinance and poverty in Bolivia’, Journal of Development Studies 37: 101–32 <https://doi.org/10.1080/00220380412331322061>.
Mosley, P. and Rock, J. (2004) ‘Microfinance, labour markets and poverty in Africa: a study of six institutions’, Journal of International Development 16: 467–500 <https://doi.org/10.1002/jid.1090>.
Microcredit Regulatory Authority (MRA) (2015) NGO-MFIs in Bangladesh: A Statistical Publication, Dhaka, Bangladesh: MRA.
O’Brien, R.M. (2007) ‘A caution regarding rules of thumb for variance inflation factors’, Quality & Quantity 41: 673–90 <https://doi.org/10.1007/s11135-006-9018-6>.
Rauf, S.A. and Mahmood, T. (2009) ‘Growth and performance of microfinance in Pakistan’, Pakistan Economic and Social Review 47: 99–122.
Schreiner, M. (2000) ‘Ways donors can help the evolution of sustainable microfinance organizations’, Savings and Development 24: 423–37.
Shahidullah, A. and Haque, C.E. (2015) ‘Green microfinance strategy for entrepreneurial transformation: validating a pattern towards sustainability’, Enterprise Development and Microfinance 26: 325–42 <https://doi.org/10.3362/1755-1986.2015.027>.
Swedish International Development Cooperation Agency (SIDA) (1997) Financial Sector Development [pdf], Stockholm, Sweden: Department for Infrastructure and Economic Cooperation, SIDA <https://www.sida.se/contentassets/d8052e1502b7441abb0e10e67e621c2f/13867.pdf> [accessed 7 May 2018].
Tchuigoua, H.T. (2015) ‘Capital structure of microfinance institutions’, Journal of Financial Services Research 47: 313–40 <https://doi.org/10.1007/s10693-013-0190-2>.
Torres-Reyna, O. (2007) Panel Data Analysis Fixed and Random Effects using Stata (v. 4.2), Princeton, NJ: Princeton University.
Van Elteren, A. (2007) Environmental and Social Risk Management and Added Value at MFIs and MFI Funds: The FMO Approach, The Hague Netherlands: Netherlands Development Finance Company (FMO).
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