Does Regulation Influence Microfinance Institutions to Be More Client-Responsive?

The regulation of microfinance services is likely to have a wide-ranging influence on the microfinance sector, particularly on institutions and their clients. This paper reveals the impact of a specific regulatory regime, the “Microcredit Regulatory Authority Act, 2006”, enacted by the Bangladesh government to monitor and supervise nonprofit nongovernment organizations (NGOs). We analyzed survey and interview data provided by clients of both nonprofit microfinance institutions (MFIs) registered under the Act and nonprofit institutions that are unregistered, all lending only to women. Client-level analysis using fixed effects for specific MFI membership is applied, focusing on the role of regulation by comparing protections as consumers of financial intermediations in terms of financial literacy, awareness, and status of clients of registered and unregistered MFIs. We found compelling evidence of a positive association between the financial status, financial literacy, and financial awareness of clients of registered MFIs, but not unregistered MFIs. These findings support the need for MFIs to implement consumer protection measures and inform their consumers about key issues to achieve improved client outcomes.

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SME Managers and Financial Literacy; Does Financial Literacy Really Matter?

Journal of Public Administration and Governance ◽

10.5296/jpag.v8i3.13539 ◽

2018 ◽

Vol 8 (3) ◽

pp. 353

Author(s):

Shamim Akhtar ◽

Yanping Liu

Keyword(s):

Financial Literacy ◽

Structural Equation ◽

Service Providers ◽

Business Owners ◽

Financial Knowledge ◽

Equation Modeling ◽

Financial Awareness ◽

Performance Results ◽

The Impact ◽

Firm Owners

The purpose of this study is to examine the level of small and medium (SMEs) business owners-managers’ financial literacy and its effect on the firm’s performance. The study applied random sample and structural equation modeling approaches in measuring the impact of SME firm owners-managers’ level of financial literacy in the context of Pakistan. The findings reveal the complete influence of firm owners- manager’s financial attitude, financial knowledge and financial awareness in adapting financial literacy to upsurge in firm performance. Results indicate that financial awareness and financial knowledge of SME managers are evidently not a precondition to SMEs performance, yet entrepreneur tactics in making decisions and association to financial attitude have a contrast with financial literacy. Findings would be valuable for the SME owners, investors and service providers.

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Effect of Efficiency on Interest Rate in Microfinance Systems of Some Transition Economies

International Conference on Eurasian Economies 2016 ◽

10.36880/c07.01566 ◽

2016 ◽

Author(s):

Metin Bayrak ◽

Kadyrbek Sultakeev ◽

Dastan Aseinov

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Transition Economies ◽

Fixed Effects ◽

Stochastic Frontier ◽

Panel Data Models ◽

Microfinance Institutions ◽

Stochastic Frontier Approach ◽

The Impact ◽

Very High

Although the share of microfinance institutions in financial sector of Transition Economies are increasing, the level of interest rates charged by microfinance institutions are very high than normal bank interest rates. Because in these countries the main reasons of high interest rates are operational cost, funding costs, credit risk, inflation and target profit of MFIs. The main purpose of this paper is to analyze the effect of efficiency on interest rate in microfinance system of sampled transition economies. This study uses MIX data that runs from 2000 to 2014 for transition economies countries. The efficiency of microfinance institutions in sampled transition economies measured by applying Stochastic Frontier Approach. The impact of efficiency on interest rate will be analyzed using fixed effects and random effects panel data models.

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The impact of microfinance to borrowers. business, personal and financial status and the mediating role of service satisfaction: evidence from the Philippines

10.21203/rs.3.rs-182720/v1 ◽

2021 ◽

Author(s):

Arneil Garcia Gabriel ◽

Jeff B. Suyu ◽

Jennifer G. Fronda ◽

Vilma Ramos

Keyword(s):

Quantitative Research ◽

Small And Medium Enterprises ◽

The Philippines ◽

Small Scale ◽

Microfinance Institutions ◽

Quantitative Research Methods ◽

Financial Status ◽

Level Of Satisfaction ◽

Microfinance Institution ◽

The Impact

Abstract The backbone of the economy of a developing country like the Philippines is its small and medium enterprises relying on soft loans provided by microfinance institutions. To assess the level of satisfaction of microfinance borrowers on the services of microfinance institution and their services as well as its impact to the business, personal and financial status are necessary for the continued operation of this industry. The objective of this study is to measure the customer level of satisfaction of the services of a microfinance institution in the Philippines and determine its impacts on the customers’ small scale business. The study used a mixed of qualitative and quantitative research methods to gather data and analyze them. The study found that the micro finance institution is giving its borrowers quality services as manifested by a very satisfied rating to the four services provided. It was also described that the institution is positively bringing impact on its borrowers’ business, personal & financial status as manifested by a high and very high impact on the two variables. The study finally revealed that the profile of the customers has significant relationship with the level of satisfaction and impact to business of its borrowers while some areas of services have to be revisited to prevent customer dissatisfaction as there are signs showing low level of satisfaction.

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Smoking and Incidence of Sleep Disorder: a systematic review and meta-analysis of cohort studies

10.21203/rs.3.rs-27889/v1 ◽

2020 ◽

Author(s):

Nan Hu ◽

Chunyi Wang ◽

Yan Liao ◽

Qichen Dai ◽

Shiyi Cao

Keyword(s):

Systematic Review ◽

Cohort Studies ◽

Sleep Disorder ◽

Fixed Effects ◽

Meta Analysis ◽

Significant Risk ◽

Positive Association ◽

Significant Risk Factor ◽

Pooled Analysis ◽

The Impact

Abstract Background Both smoking and sleep disorder are worldwide problems and this study aim to investigate the impact of smoking on the incidence of sleep disorder. Methods PubMed, EMBASE and OVID were searched through March, 2020. Cohort studies reporting the effect of smoking on the incidence of sleep disorder were included. We quantitatively analyzed the basic framework and study characteristics, and then pooled estimate effects with 95% confidence intervals (CIs) of outcomes of each included studies using fixed-effects meta-analyses. Results This systematic review included seven cohort studies involving 17,414 participants. Quantitatively summarized results suggested smoking could increase the incidence of sleep disorder (OR: 1.08, 95%CI: 1.02,1.13). For regular smokers and occasional smokers, significant association between smoking and incidence of sleep disorder was found (regular smoker: OR = 1.07, 95% CI:1.01,1.13; occasional smoker: OR = 1.62, 95% CI:1.15,2.28). As for ex-smokers, the pooled analysis didn’t indicate a positive association (OR = 1.02, 95% CI:0.67,1.54). Subgroup analysis by age, gender ratio and religion showed statistically significant relationship between smoking and incidence of sleep disorder in specific groups. Conclusions Integrated longitudinal observational evidence identified smoking as a significant risk factor of sleep disorder. Considering the limited amount of available researches, more high-quality and prospective cohort studies of large sample sizes are needed to explore details of this association.

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Do firms substitute earnings management methods? The case of the MENA region

Journal of Research in Emerging Markets ◽

10.30585/jrems.v3i1.568 ◽

2020 ◽

Vol 3 (1) ◽

pp. 32-43

Author(s):

Tarek Elkalla

Keyword(s):

Earnings Management ◽

Fixed Effects ◽

Positive Association ◽

Mena Region ◽

Significant Positive Association ◽

Research Findings ◽

Earnings Targets ◽

Panel Fixed Effects ◽

Fixed Effects Regression ◽

The Impact

The purpose of this paper is to empirically test whether firms substitute accruals-based earnings management with real activities-based earnings management or complement the two methods in the MENA region. Further, this paper seeks to investigate the impact of IFRS adoption on accruals-based earnings management. To test the research hypotheses, this paper employs a panel fixed-effects regression model for a sample of 798 non-financial listed MENA region firms over the period 2008-2015, inclusively. The research findings provide evidence that firms complement accruals-based and real activities-based earnings management methods rather than substituting one earnings management method for the other, which suggests that MENA firms conduct both methods concurrently to achieve earnings targets and are not constrained by the relative costs of employing a particular method. Furthermore, a significant positive association between GDP growth and accruals-based earnings management is found, which provides evidence that economic growth leads to a greater degree of accruals-based earnings management behavior in MENA region firms.

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The Impact of Financial Literacy on Investment Decisions Between Saving and Credit: Studies on Sharia Bank Customers in the Special Region of Yogyakarta

Journal of Economics and Business ◽

10.31014/aior.1992.03.04.291 ◽

2020 ◽

Vol 3 (4) ◽

Author(s):

R. Heru Kristanto HC ◽

◽

R. Hendry Gusaptono

Keyword(s):

Financial Literacy ◽

Investment Decisions ◽

Sampling Technique ◽

Financial Knowledge ◽

Financial Behavior ◽

Financial Attitudes ◽

Financial Awareness ◽

The Impact ◽

Positive Effect ◽

Special Region

Investment decision-making will involve cognitive, psychological, social and behavioral aspects. Financial literacy includes financial knowledge, financial behavior, financial awareness and financial attitudes. This study aims to analyze the impact of financial literacy on investment decisions of Sharia Bank customers. The sampling technique uses random sampling on Sharia Bank customers in the Special Region of Yogyakarta, Indonesia. Data analysis using multiple regression. The results reveal that 1) Financial knowledge has a positive effect on investment decisions. 2) Financial behavior has a positive effect on investment decisions. 3) Financial awareness has a positive effect on investment decisions. 4) Financial attitudes has a positive effect on investment decisions.

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Impact of Micro-Finance on Business Creation: A Case of Nepal

Journal of Nepalese Business Studies ◽

10.3126/jnbs.v11i1.24197 ◽

2018 ◽

Vol 11 (1) ◽

pp. 23-34

Author(s):

Bharat Ram Dhungana

Keyword(s):

Financial Literacy ◽

Financial Services ◽

Positive Association ◽

Primary Data ◽

Rank Test ◽

Chi Square ◽

Government Organizations ◽

Business Creation ◽

Loan Size ◽

The Impact

The paper examines the impact of micro-finance on business creation in Nepal through paired sample t-test, chi-square test and Wilcoxon signed rank test. The research is based on primary data collected through structured questionnaires. The survey includes 500 micro-finance clients from four districts of western development region who have been involved in micro-finance programme for last five years. There is a positive association between loan size and its application. The clients who have taken small size of loans, they have mostly spent their loans on domestic purposes and found poor application of loans in micro-business whereas big loan size clients have greater application of loans in productive sectors. The study concludes that micro-business and enterprises creation of people have been significantly improved after involvement in micro-finance programme. Micro finance institutions should give equal priority for non-financial services such as financial literacy and provision of entrepreneurship skills through government and non-government organizations that ultimately helps to utilize micro-credit into productive sectors.

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Does Loan Size Matter for Productive Application? Evidence from Nepalese Micro-finance Institutions

REPOSITIONING The Journal of Business and Hospitality ◽

10.3126/repos.v1i0.16043 ◽

2016 ◽

Vol 1 ◽

pp. 63-72

Author(s):

Bharat Ram Dhungana

Keyword(s):

Financial Literacy ◽

Financial Services ◽

Positive Association ◽

Microfinance Institutions ◽

Savings And Loans ◽

Government Organizations ◽

Western Development ◽

Development Region ◽

Loan Size ◽

Size Matter

This paper examines the loan size and its productive application after involvement in micro-finance programme in western development region of Nepal. The paper is based on primary sources of data collected through structured questionnaires. The survey includes 500 clients from four districts of western development region both from government and Private microfinance institutions. The study shows that there is positive association between size of savings and loans, size of savings and loan application, current loan size and ethnicity, loan size and duration of membership, and finally loan size and its application. It has been found that clients who have taken small size of loans, they have mostly spent their loans on domestic purposes and found poor application of loans in micro-business whereas big loan size clients have greater application of loans in productive sectors. Micro-finance institutions should increase loan size (as per the provision of monitory policy) with necessary entrepreneurship skills that will help to enhance productive application of loans however, strict monitoring and supervision is essential. Thus, MFIs should give equal priority for non-financial services such as financial literacy and provision of entrepreneurship skills through government and non-government organizations that ultimately helps to utilize micro-credit into productive sectors.Repositioning Vol.1(1) 2016: 63-72

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MICROFINANCE AS A TOOL FOR POVERTY REDUCTION: CASE OF WESTERN BALKAN COUNTRIES

10.31108/7.2021.43 ◽

2021 ◽

Author(s):

Nertil MERA ◽

◽

Manjola TOZAJ ◽

Keyword(s):

Fixed Effects ◽

Poverty Reduction ◽

Total Output ◽

Microfinance Institutions ◽

Fixed Effects Model ◽

Western Balkans ◽

Poverty Level ◽

Macroeconomic Factors ◽

The Impact ◽

Reduction Case

Microfinance is of a vital importance to the unprivileged people especially in the developing countries. People with no means of sustaining themselves, rely on microfinance for a variety of services as a means for poverty reduction and increasing happiness. This study employs a Fixed Effects Model to analyze the impact of microfinance and some other macroeconomic factors on poverty reduction in Albania, Montenegro and Bosnia and Hercegovina. Empirical findings suggest that inflation does not play a role on the poverty reduction. On the other hand, total output (GDP) and microfinance (GLP) are found to be highly statistically significant in explaining the poverty reduction in the respective countries. Therefore, putting serious efforts on increasing GDP and supporting microfinance institutions may help the countries reduce the poverty level. Keywords: Western Balkans, microfinance, GDP, poverty reduction, fixed effects model

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Banks’ CSR reporting – Do women have a say?

Corporate Governance ◽

10.1108/cg-11-2019-0338 ◽

2020 ◽

Vol 20 (4) ◽

pp. 639-651 ◽

Cited By ~ 1

Author(s):

Triinu Tapver ◽

Laivi Laidroo ◽

Natalie Aleksandra Gurvitš-Suits

Keyword(s):

Fixed Effects ◽

Positive Association ◽

Gender Quotas ◽

Female Representation ◽

Content Type ◽

Csr Reporting ◽

Logistic Regressions ◽

Csr Disclosure ◽

Corporate Social ◽

The Impact

Purpose This paper aims to determine the association between corporate social responsibility (CSR) reporting of listed banks and female representation on boards while controlling for the impact of gender quotas. Design/methodology/approach Logistic regressions are used with bank fixed effects on a global sample of 285 commercial banks from 2005 to 2017. Findings There exists a positive association between the proportion of women on board and banks’ CSR disclosure. Positive association remains also after quota corrections for banks with either below- or above-quota female representation. Further, adding more women to boards than required by quota could affect boards’ CSR reporting in masculine countries but not in feminine countries. Research limitations/implications The results are not generalizable to smaller listed banks and the used estimation approach does not enable to detect causality. Practical implications Policymakers interested in improving banks’ CSR reporting could introduce gender quotas. Social implications Gender quotas can enforce banks’ sustainable behaviour. Originality/value First, it is the first study to thoroughly control for gender quotas while investigating the association between female representation on boards and CSR disclosure. Second, this paper moves forward from the so-far predominant concentration on single-country studies on banks’ CSR reporting. Third, this paper covers the aspect of a country’s masculinity-femininity as a factor that could influence the association between CSR disclosure and female representation.

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