The relationship between the social performance and operational sustainability of Vietnam's formal microfinance institutions

2022 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Van Duong Ha
Keyword(s):  
Social Performance ◽  
Microfinance Institutions ◽  
The Social ◽  
The Relationship

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.

scholarly journals Corporate Social Responsibility & Market Volatility: Relationship and Trading Opportunities

2017 ◽  
Vol 10 (5) ◽  
pp. 1
Author(s):  
Vasiliki A. Basdekidou ◽  
Artemis A. Styliadou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Performance ◽  
Environmental Aspects ◽  
Socially Responsible ◽  
Community Activities ◽  
The Social ◽  
The Usa ◽  
Corporate Social ◽  
The Relationship

This article examines the relationship between corporate social responsibility performance (CSR.P) and market trading volatility (MTV) provoking by the release of the non-farm employment payment-reports (NFP) the first Friday each month in the USA. It also discusses the trading opportunities involved in such as volatile environments. Actually, we consider the interaction between the social performance (for environment, employment and community activities) and the financial and trading performance than would be the case for an accumulated functionality in NFP releases. In general, social performance returns are negatively related to trading returns; so, the relatively poor financial and market trading reward (profit), offered by socially responsible ethical ETFs trading the NFP reports, is in accordance to their good social performance regarding employment and environmental aspects. This could be changed if these ethical ETFs incorporate into their arsenal of trading tools a number of CSR.mtv functions (utilities) discussed in this article. Impressively, we find also that considerable bizarre returns are obtained by funds, holding a portfolio of socially least unethical ETFs, involved in short-term or intraday speculations. In this domain, the complex relationship between social, financial and market trading performance, during the NFP “psychological time”, offers great trading opportunities.

scholarly journals Social and financial performance of MFIs: complementary or compromise?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Navin ◽  
Pankaj Sinha
Keyword(s):  
Financial Performance ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Current Time ◽  
Content Type ◽  
Dynamic Framework ◽  
The Social ◽  
Loan Size ◽  
The Relationship ◽  
Practical Implications

Purpose With the ongoing transformation of the microfinance sector, questions have been raised on the ability of microfinance institutions (MFIs) to perform financially well without compromising with their social objectives. The current study attempts to analyse the social and financial performance of Indian MFIs with an objective to find the kind of relationship between these two objectives. Design/methodology/approach The dynamic framework of simultaneous equations model is used to find the nature of the relationship which exists between social and financial performance of Indian MFIs. Findings The study finds that depth of outreach enables MFIs to achieve financial sustainability. On the other hand, financially strong MFI lend more as reflected by an increase in their average loan size. Research limitations/implications Many MFIs still receive subsidies to support their operations. Ideally, adjustments should be made to remove the effect of such subsidies on their cost. However, due to non-availability of data, the study fails to make any adjustment for the subsidies. Practical implications The presence of a complementary relationship between social and financial performance in the Indian microfinance sector is quite encouraging for the policymakers during the current time when the sector is becoming less dependent on subsidies. However, the recent upsurge in the average loan size requires attention. Social implications The findings suggest that MFIs can achieve financial sustainability while targeting poor clients. This indicates that MFIs can perform socially good along with their financial performance. Originality/value Such study is vital when the Indian microfinance sector is moving away from subsidies to become self-reliant and commercialised. Few studies have focused on this aspect of Indian microfinance sector.

New approaches to measure the social performance of microfinance institutions (MFIs)

2018 ◽  
Vol 53 ◽  
pp. 88-97 ◽  
Author(s):  
Uzma Bibi ◽  
Hatice Ozer Balli ◽  
Claire D. Matthews ◽  
David W.L. Tripe
Keyword(s):  
Social Performance ◽  
Microfinance Institutions ◽  
New Approaches ◽  
The Social

scholarly journals Desempenho social e financeiro de pequenas e médias empresas: modelo conceitual de causa e efeito

2016 ◽  
Vol 15 (2) ◽  
pp. 60-70
Author(s):  
Jose Elenilson Cruz ◽  
Rafael Barreiros Porto
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Empirical Studies ◽  
The Social ◽  
Research Propositions ◽  
Object Of Study ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Corporate social performance can be understood as a way to measure the efficiency of interactions between companies and their main stakeholders. This evaluation has led to some steps forward in research and management implications. One of its main issues, which is the study of the relationship between social and financial performance, focuses on traditional joint-stock companies. This fact reveals a gap concerning the object of study in the literature of the area. The importance of investigating small and medium companies (SMCs) lies in their social and economic relevance and also in new evidences these studies may provide. After the theoretical discussion, this study presents a conceptual model composed of research propositions to be tested by future empirical studies that wish to answer the following question: in small and medium companies there are relations of cause and effect between social and financial performance? The test of the proposals suggested can reveal, among other results, the categories of social performance of SMCs most affected by a higher financial performance, as established by the premises of theoretical slack-resources; if the impact of these categories on the financial performance is qualified by way of management, confirming assumptions of the theory good management, or if there are no significant differences between the social performance of SMEs with higher financial performance and SMEs with low financial performance, revealing the existence of non-financial factors also influence social performance.

scholarly journals Corporate Social Responsibility and Banks’ Financial Performance

2018 ◽  
Vol 11 (10) ◽  
pp. 42 ◽  
Author(s):  
Francesco Gangi ◽  
Mario Mustilli ◽  
Nicola Varrone ◽  
Lucia Michela Daniele
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Social Performance ◽  
The Social ◽  
Stakeholder Perspective ◽  
European Banking ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

This study analyzes whether and how corporate social responsibility (CSR) affects the financial performance of the European banking industry. According to agency theory, CSR engagement should be negatively related to financial performance. By contrast, from the stakeholder perspective and according to the resource-based view, CSR should positively impact banks’ financial performance. Over a period of six years (2009-2015) following the explosion of the sub-prime crisis, the econometric estimates of the current study confirm a positive effect of CSR engagement on banks’ financial performance. Net interest income and profitability increase with the increase in social performance. At the same time, CSR is negatively related to non-performing loans. Therefore, in contrast to the trade-off model, our results support a win-win vision of the relationship between the social and financial performance of banks.

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

Institutional Ownership and Corporate Social Performance in Emerging Economies Multinationals: Evidence from India

2020 ◽  
Vol 13 (2) ◽  
pp. 227-252
Author(s):  
Sandeep Yadav
Keyword(s):  
Institutional Investors ◽  
Multinational Firms ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Institutional Ownership ◽  
Risk Behaviour ◽  
The Social ◽  
Corporate Social ◽  
Institutional Owners ◽  
The Relationship

This study fills the gap in the literature by considering the heterogeneous impact of institutional ownership on various dimensions of corporate social performance (CSP). Using the behavioural risk agency perspective, we argue that the risk behaviour of various institutional owners is not the same towards the CSP. We have taken a balanced panel sample of 61 Indian multinational firms for the span of 2013–2018 to test the proposed hypotheses. Results show a negative association of pressure-sensitive institutional investors’ ownership with social and governance dimensions of CSP. Mutual funds ownership is positively associated with the social and governance dimensions of CSP. Foreign institutional investors ownership has no significant impact on CSP. We found that the environmental dimension of CSP is ignored by institutional owners. The moderating effect of firm internationalisation on the relationship between institutional ownership and CSP is also examined.

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.

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