Women’s presence in top management and the performance of microfinance institutions in West Africa

2019 ◽  
Vol 47 (2) ◽  
pp. 207-222 ◽  
Author(s):  
Hamadou Boubacar
Keyword(s):  
Peer Review ◽  
Social Performance ◽  
West African ◽  
Senior Management ◽  
Social Orientation ◽  
Top Management ◽  
Microfinance Institutions ◽  
Content Type ◽  
The Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the relationship between the presence of women in senior management and the performance of microfinance organizations in the West African Economic and Monetary Union (WAEMU). Design/methodology/approach Using a data set of 266 microfinance institutions (MFIs) for the period 2013–2017, the study assesses the impact of women’s representation in senior management and on the boards of West African MFIs on these institutions’ financial and social performance. Findings The results indicate that board size and diversity positively and significantly affect the social performance of MFIs, particularly in relation to women’s participation in decision-making regarding expanding services to poor people. In essence, greater gender diversity at the board and management levels promotes the social orientation of MFIs. Research limitations/implications The low representation of women on boards and as managers makes it difficult to more accurately determine the true impact of women in senior positions on MFIs performance. Practical implications The author recommends minimum quotas for women in the top management of MFIs. This would help these institutions incorporate key skills and actively involve all members. Also, regulation places constraints on the ability of West African MFIs to mobilize deposits and this negatively impacts their financial performance. Originality/value This investigation highlights the importance of including women in the top management of MFIs to improve these institutions’ performance. It also underscores an interesting problem and answers questions raised in the existing literature by either rejecting or confirming the findings. As players in the microfinance sector recognize that board diversity is important for the success of any microfinance institution, this paper helps shed light on the situation of these organizations in the WAEMU. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0365

Financial inclusion and the performance of microfinance institutions: Does social performance affect the efficiency of microfinance institutions?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nisha Bharti ◽  
Sushant Malik
Keyword(s):  
Rural Areas ◽  
Social Performance ◽  
Financial Inclusion ◽  
Data Envelopment ◽  
Microfinance Institutions ◽  
Content Type ◽  
Social Mission ◽  
Vision Statements ◽  
The Social ◽  
The Impact

Purpose The purpose of this study is to evaluate whether focus on social output affects the efficiency of MFIs. Inclusive growth is the key developmental aim for many developing countries, including India. The role of microfinance institutions (MFIs) in promoting financial inclusion is widely applauded. However, to achieve financial sustainability, MFIs have become highly commercialised and are seen to have drifted away from their social mission. Various studies have shown the efficiency of MFIs on financial parameters. MFIs being a social enterprise, it is important to include social output among the efficiency parameters. Design/methodology/approach This study attempts to compare the efficiency of MFIs with and without social performances across the various size of MFIs based on their asset, i.e. large, medium and small. This study uses Data Envelopment Analysis (DEA) for assessing an MFI’s efficiency. For calculating the social output score, the Gutman Scale is used. Efficiency is calculated with and without social output, and the resulting scores are compared to assess the impact of social performance on the efficiency of MFIs. Findings The results of this study allow us to conclude that with the inclusion of social output, the efficiency of MFIs improves across various categories. In terms of social performances, it is concluded that MFIs are targeting women and mostly working in rural areas but have neglected issues like health and education. Originality/value The findings of this study will help MFIs in formulating their mission and vision statements and in achieving the objective of financial inclusion without experiencing mission drift.

Corporate governance and the social performance: investigation on Tunisian financial institutions

2018 ◽  
Vol 60 (6) ◽  
pp. 1412-1431
Author(s):  
Nejia Nekaa ◽  
Sami Boudabbous
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Institution ◽  
Stock Exchange ◽  
Social Performance ◽  
Financial Sector ◽  
Content Type ◽  
The Social ◽  
Questionnaire Method ◽  
The Impact

Purpose The purpose of this study is to show the specificities of the corporate governance of Tunisian financial institutions and the impact of the internal mechanisms of corporate governance of these institutions on their social performance. It is therefore interesting to establish the existing relationship between these mechanisms of corporate governance and the performance of a financial firm. Design/methodology/approach This study aims to study the financial sector, generally characterized by its opacity, its regulation, its evolution and its obscurity. Therefore, a study based on the questionnaire method was recommended. The questionnaire is intended for managers. Therefore, the authors interviewed 138 managers of Tunisian financial institutions dispersed between agencies and headquarters in different regions (Gabes, Tozeur, Gafsa, Sfax, Sousse and Tunisia). Findings As a result, an impact on performance was observed according to the empirical study. Therefore, the authors can conclude an essential role of internal mechanisms for improving the social performance of a financial institution. The empirical findings in this paper lead to important conclusions. Indeed, the variables measuring the governance mechanisms have divergent effects on the social performance of the financial institutions subject to the sample. For the variables board of directors, confidence, culture, auditing, they have a positive effect. While, the incentive remuneration effect negatively the social performance. Originality/value This study will be based essentially on the financial sector in Tunisia: the credit institutions (22 banks), the establishments of leasing (eight companies of leasing), two factoring companies and two banks of cases which are listed on the Stock Exchange of Tunis (BVMT).

Role of gender on the performance of Indian microfinance institutions

2019 ◽  
Vol 34 (6) ◽  
pp. 429-443 ◽  
Author(s):  
Chandralekha Ghosh ◽  
Samapti Guha
Keyword(s):  
Social Performance ◽  
Gender Diversity ◽  
Microfinance Institutions ◽  
Content Type ◽  
Female Managers ◽  
Board Level ◽  
Managerial Level ◽  
The Impact ◽  
Female Clients

Purpose Microfinance institutions (MFIs) are known for their contribution to the women empowerment and poverty alleviation but it is not clear about the role of gender on the performance of this industry. It is important to explore the representation of both the gender in three levels, namely, decision-making, day-to-day management and implementation of the micro-financial services. This study aims to examine the impact of female board members, female managers and female field officers on the financial and social performance of the MFIs. Design/methodology/approach The authors have used random effect panel data analysis. The study covers 104 MFIs operating in India. The time period of the analysis is from 2010 to 2014. Findings The study has shown that as the number of female directors within the board increase there is an increase in cost per borrower. This is an indication that more female clients are being targeted. The increase in number of female managers leads to an increase in the number of active borrowers. The increase in the number of female staff members leads to an increase of operational self-sufficiency and yield of the gross portfolio. Research limitations/implications The present study has faced a lot of limitation due to the non-availability of the secondary data on the governance system of the microfinance industry. The study could not be undertaken for an extended period because of the unavailability of data for a long period. Practical implications This study has highlighted the role of gender in case of performance of microfinance institutions. The gender diversity at the field level has shown to enhance the financial performance of the MFIs. So, the MFIs should try to bring gender diversity at the operation level. Social implications This study has shown that an increase of woman directors at the board level increase female clients of MFIs. The increase of female managers also enhances number of female clients. So, the gender diversity at the managerial level and director level help MFIs to meet their social performance by reaching to more number of needy female clients. Originality/value The gender diversity at the three levels, namely, board level, managerial level and field operation level has not been analyzed in the Indian context. In India MFIs mainly target the female clients so in this context having gender diversity at the three levels of operation of the MFIs, which can improve both the financial and social performance of the MFIs.

Impact of Competition on Social Performance of MFIs: Comparative Analysis of India and Bangladesh

2019 ◽  
Vol 24 (2) ◽  
pp. 160-170
Author(s):  
Joyeeta Deb
Keyword(s):  
Panel Data ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Loan Repayment ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Social ◽  
Determining Factors ◽  
Loan Quality ◽  
The Impact

Although studies encompassing the different aspect of microfinance like sustainability of microfinance institutions (MFIs), role of microfinance in poverty alleviation, etc., have enriched the literature from time to time, studies on competition and its impact on social performance of MFIs are scarce. There also exists lacking consensus as to how can competition influence MFIs’ social performance. The empirical evidence reveals duality of opinion. With information asymmetry, competition enhances borrowers’ indebtedness and lowers expected loan repayment and impeding loan quality. Furthermore, in order to overcome these problems, MFIs would engage in more screening that raises their operational costs. This encumbers the sustainability of MFIs. Thus, the socially oriented MFIs, in order to remain sustainable, start targeting the less poor borrowers. But the other view holds that as competition intensifies, it provokes the MFIs to remain committed with the social objective and to strive to retain the clients. The theory on impact of competition on the social performance of MFIs may be either positive or negative, which calls for further investigation. Against this backdrop, this article attempts to assess the impact of competition on social performance of MFIs in India and Bangladesh. The study is conducted over 53 MFIs from India and 20 MFIs from Bangladesh on which a complete set of data is available. The study period is confined to 9 years from 2009 to 2017. In order to establish the association between competition and MFIs’ social performance, panel data regression is used. The study takes into account the depth and breadth of outreach as the dependent variable. The study uses panel data regression to establish the association between competition and social performance of MFIs. The empirical analysis reveals that competition has no significant association with any of the measures of social performance. This implies that social performance in the sector is explained by other factors. Amongst the country-specific variables, it is clear from analyses that gross domestic product (GDP) and inflation are important determining factors of MFIs’ social performance. Country of origin (COO) of the MFIs is one of the determining factors for social performance as it is found to be significant for three out of the four models. It is also evident from the analyses that Bangladeshi MFIs have a greater impact on MFIs’ social performance in terms of outreach in comparison to Indian MFIs. While for percentage of female borrowers (PFB), Indian MFIs account for greater depth of outreach in comparison to Bangladesh.

scholarly journals Predicting The Impact of Commercialization Factors on The Social Mission of Islamic Microfinance Institutions for Muslim Community

2020 ◽  
Vol 6 (1) ◽  
pp. 14
Author(s):  
Hesi Eka Puteri
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Quantitative Research ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Muslim Community ◽  
Social Mission ◽  
The Social ◽  
Community Banking ◽  
The Impact

<p class="abstrak">As a community banking operating in Islamic principles, Islamic rural banks are faced with two performance targets namely financial performance and social performance which are both interrelated. This study examined the impact of commercialization factors covering profitability, regulation, and competition on the social performance of Islamic rural banks. This study was quantitative research based on a survey on six units of Islamic rural banks in West Sumatera province of Indonesia from 2012 to 2018. Data collected from the publication of financial services authority and other financial documents at Islamic rural banks then analyzed with panel data regression. The findings of this research showed that profitability and competition influenced social performance. Meanwhile, there was no regulation’s impact on social performance.  Regulatory factors that were initially expected to strengthen the social responsibility mission of Islamic rural banks, did not stimulate the increase of social performance. This study reveals the importance of the commercialization factor in improving the social performance of Islamic rural banks by increasing the social benefits through providing financial services for the low-income Muslim community.</p><p class="abstrak" align="left"> <em>Sebagai sebuah community banking yang beroperasi dalam prinsip-prinsip Islam, BPR Syariah dihadapkan pada dua target kinerja yaitu kinerja keuangan dan kinerja sosial yang keduanya saling terkait. Penelitian ini bertujuan untuk menguji dampak dari faktor-faktor komersialisasi yang meliputi profitabilitas, regulasi dan kompetisi terhadap kinerja sosial BPR Syariah. Penelitian ini menggunakan pendekatan kuantitatif berdasarkan survei pada enam unit BPR Syariah di provinsi Sumatera Barat Indonesia dari tahun 2012 hingga 2018. Data dikumpulkan dari publikasi Otoritas Jasa Keuangan dan dokumen keuangan lainnya di BPR Syariah kemudian dianalisis dengan regresi data panel. Hasil penelitian ini menunjukkan bahwa profitabilitas dan persaingan berpengaruh terhadap kinerja sosial, sedangkan regulasi tidak berpengaruh terhadap kinerja sosial. Faktor regulasi yang semula diharapkan memperkuat misi tanggung jawab sosial BPR syariah, ternyata tidak merangsang peningkatan kinerja sosial. Studi ini mengungkap akan pentingnya faktor komersialisasi dalam meningkatkan kinerja sosial BPR syariah dengan meningkatkan manfaat sosial melalui pemberian layanan keuangan untuk masyarakat muslim berpenghasilan rendah.</em></p><p class="abstrak"> </p>

The impact paths of social capital and the effects of microfinance

2019 ◽  
Vol 11 (4) ◽  
pp. 704-718
Author(s):  
Fang Xiong ◽  
Jia Lu You
Keyword(s):  
Social Capital ◽  
Social Relations ◽  
Structural Equation ◽  
Rural China ◽  
Capital Formation ◽  
Microfinance Institutions ◽  
Content Type ◽  
Social Sanctions ◽  
The Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact paths of the social capital and the effects of microfinance in rural China, and address effective methods to enhance the effects of microfinance for rural China. Design/methodology/approach Using a structural equation model with survey data from 350 rural households in China, this paper analyzes empirically whether greater level of social sanctions and social relations caused more tangible effects of microfinance, and whether tangible effects of microfinance are associated with social capital formation of households. Findings The results indicate that social capital promotes the effects of microfinance and the process of providing microfinance service is also the process of building social capital. Moreover, social sanctions diminish the effects of microfinance while social relations boost them and enhance the effects of microfinance that can encourage social capital formation. Results also show that a reverse causal relationship exists between social sanctions and social relations. Research limitations/implications The empirical results imply that actively utilizing and creating social capital is vital to improve the effects of microfinance, and microfinance institutions (MFIs) should concentrate more on harmonious social relations and deliberately build social capital. Practical implications These findings imply that actively utilizing and creating social capital is vital to improve the effects of microfinance, and the MFIs should concentrate more on harmonious social relations and deliberately build social capital to enhance the effects of microfinance while prudently use social sanctions. Social implications Enhancing the effects of microfinance, while prudently using social sanctions, increases households income. Originality/value This paper originates to investigate the links between the social capital and the effects of microfinance in a mutual way, and the results urge more attentions on the harmonious social relations which have been ignored to enhance the effects of microfinance.

scholarly journals The digital transformation of microfinance institutions: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gregor Dorfleitner ◽  
Davide Forcella ◽  
Quynh Anh Nguyen
Keyword(s):  
Home Country ◽  
Social Performance ◽  
Digital Transformation ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Content Type ◽  
Future Studies ◽  
The Social ◽  
The Relationship ◽  
Practical Implications

PurposeThis study seeks to identify the factors that are associated with the digital transformation of microfinance institutions (MFIs).Design/methodology/approachThe study employs probit models to investigate the likelihood of integrating digital solutions by MFIs and Heckman models for robustness checks.FindingsThe findings reveal that the adoption of these tools is consistent with the social performance of MFIs. Furthermore, the profitability of the institutions and their home country development are associated with a larger application of digital support solutions.Research limitations/implicationsSince the survey data collected is not longitudinal and does not cover many MFIs, it may encounter the absence of comprehensive results. Moreover, the study is limited to supply-side incentive factors, thus lacks of investigations under supply-demand interaction schemes. Therefore, future studies are encouraged to fill up these knowledge gaps.Practical implicationsThe results imply that the adoption of digital solutions does not necessarily harm the social performance of MFIs. In addition, the findings may imply that financial sustainability can serve as being a preliminary condition but must not lead to the mission drift of MFIs. Findings of the study have implications for policymakers, donors and investors who wish to accelerate the digital transformation within the microfinance industry and to significantly boost financial inclusion. A focus on more social-oriented MFIs can be an appropriate solution. Furthermore, the pathway to digital financial inclusion through microfinance can be made more efficient if improved and supportive facilities as well as systems for digital technology are available.Originality/valueThis paper is the first one which highlights the relationship between the MFI's social performance and the application of digital solutions by MFIs. Furthermore, we discuss this link while considering cost aspects.

The impact of board traits on the social performance of Canadian firms

2015 ◽  
Vol 15 (3) ◽  
pp. 293-305 ◽  
Author(s):  
Sébastien Deschênes ◽  
Miguel Rojas ◽  
Hamadou Boubacar ◽  
Brigitte Prud'homme ◽  
Alidou Ouedraogo
Keyword(s):  
Boards Of Directors ◽  
Social Performance ◽  
Independent Directors ◽  
Publicly Traded ◽  
Content Type ◽  
Board Characteristics ◽  
The Social ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose – This paper aims to examine if certain board characteristics have an impact on the corporate social responsibility (CSR) score of corporations. Design/methodology/approach – The authors’ paper analyzes the link between the ratings of CSR of the largest publicly traded Canadian firms (i.e. those included in the S&P/TSX 60 index) and the traits of their boards. Findings – The authors’ examination concludes that the CSR score is positively linked with the percentages of women and independent directors. The study did not find a link in the cases of board characteristics, namely, director’s remuneration, director’s tenure and director’s ownership. Research limitations/implications – The study focuses on the 60 largest public Canadian firms, which are strongly scrutinized. An analysis that includes smaller firms as well may show different results. Practical implications – To improve the ability of boards of directors to deal with CSR, the appointment of women and independent directors should be given greater emphasis. Data show that all boards in their sample are composed of at least 50 per cent of independent directors, with an average of 80 per cent. Thus, there is a more limited room to ameliorate CSR by adding independent directors. In contrast, women represented, on average, only 14.25 per cent of all directors. Companies wanting to improve their CSR should consider appointing more female participation in their boards. Originality/value – The paper contributes to the extant literature on corporate governance by presenting evidence of a link between CSR and certain board characteristics.

scholarly journals The impact of young people's participation in events

2014 ◽  
Vol 5 (3) ◽  
pp. 198-218 ◽  
Author(s):  
Eliza Hixson
Keyword(s):  
Young People ◽  
Identity Development ◽  
Focus Groups ◽  
Social Impact ◽  
Transitional Period ◽  
School Students ◽  
Content Type ◽  
The Social ◽  
Sense Of Involvement ◽  
The Impact

Purpose – This paper aims to explore the social impact that two events, the Adelaide Fringe Festival and the Clipsal 500, have on young residents (16-19 years old) of Adelaide. The purpose of this paper is to examine how young people participate in these events and how this affects their sense of involvement in the event and contributes to their identity development. Design/methodology/approach – A mixed methods approach was adopted in which focus groups and questionnaires were conducted with secondary school students. As an exploratory study, focus groups (n=24) were conducted in the first stage of the research. The results of the focus groups were used to develop a questionnaire that resulted in 226 useable responses. The final stage of the research explored one event in further depth in order to determine the influence of different participation levels. Findings – This study found that young people demonstrated more involvement in the Adelaide Fringe Festival and their identities were more influenced by this event. Further investigation of the Adelaide Fringe Festival also indicated that level of participation affects the social outcomes gained, with those participating to a greater degree achieving higher involvement and increased identity awareness. This is demonstrated through a model which aims to illustrate how an event impact an individual based on their role during the event. Originality/value – This paper applies two leisure concepts in order to analyse the impact of events. Activity involvement is a concept which examines the importance of the activity in the participant's life. Also of importance to young people is how activities contribute to their identities, especially because they are in a transitional period of their lives.

Residents’ perceptions of the impact of tourism in Abu Dhabi, United Arab Emirates

2017 ◽  
Vol 11 (4) ◽  
pp. 551-572 ◽  
Author(s):  
Nada Hammad ◽  
Syed Zamberi Ahmad ◽  
Avraam Papastathopoulos
Keyword(s):  
United Arab Emirates ◽  
Social Exchange ◽  
Structural Equation ◽  
Social Exchange Theory ◽  
Cultural Influences ◽  
Abu Dhabi ◽  
Equation Modeling ◽  
Content Type ◽  
The Social ◽  
The Impact

Purpose This paper aims to investigate residents’ perceptions of tourism’s impact on their support for tourism development in Abu Dhabi, United Arab Emirates (UAE). Design/methodology/approach Data were collected using self-administered questionnaires from Abu Dhabi residents (n = 407), who represented 30 nationalities residing in the emirate. Based on social exchange theory, structural equation modeling was used to test hypotheses. Findings Results suggest that Abu Dhabi residents perceive the impacts of tourism positively and are more sensitive to the environmental and economic influences of tourism than the social and cultural influences. Research limitations/implications This study was limited to Abu Dhabi residents; findings cannot be generalized to other emirates in the UAE, or other countries. Originality/value This study adds value to extant tourism literature by investigating residents’ perceptions of the influence of tourism in one of the richest cities worldwide, which aspires to be one of the fastest growing tourism destinations in the Middle East.

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