바로가기메뉴

본문 바로가기 주메뉴 바로가기

ACOMS+ 및 학술지 리포지터리 설명회

  • 한국과학기술정보연구원(KISTI) 서울분원 대회의실(별관 3층)
  • 2024년 07월 03일(수) 13:30
사전등록 바로가기
 

logo

  • P-ISSN2765-6934
  • E-ISSN2765-7027
  • KCI

ISSN : 2765-6934

논문 상세

이전 다음
논문 투고

Vol.10 No.1

Citation Share

Does Portfolio Quality Influence Financial Sustainability? A Case of Microfinance Institutions in Kenya

Asian Journal of Business Environment / Asian Journal of Business Environment, (P)2765-6934; (E)2765-7027
2020, v.10 no.1, pp.37-43
Stephen K. BITOK (Moi University)
Josephat Y. CHEBOI (Moi University)
Ambrose KEMBOI (Moi University)
Stephen, K. B. , Josephat, Y. C. , & Ambrose, K. (2020). . Asian Journal of Business Environment, 10(1), 37-43.

Abstract

Purpose: The purpose of this study was to examine the relationship between portfolio quality and financial sustainability of microfinance institutions in Kenya. Research Design, Data, and Methodology: The analysis was based on a panel dataset of 30 microfinance institutions for the period of 2010 to 2018. Data was obtained from the Microfinance information exchange (MIX) database, and it was analyzed through descriptive and inferential statistics with the aid of STATA. Based on the results of the Hausman test, the study adopted the fixed effect regression model to test the research hypothesis. Results: The study found that portfolio quality had a positive significant effect on financial sustainability of Microfinance institutions in Kenya (β= 0. 211; p-value < 0.05). For the control variables; firm age had a positive effect (β= 0.773; p-value <0.05), while firm size (β= -0. 749; p-value < 0.05) had a negative effect on financial sustainability. Conclusions: The study concluded that portfolio quality has an important influence on the financial sustainability of microfinance institution. The study recommends that managers of microfinance institutions should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing.

keywords
Portfolio quality, Financial Sustainability, Microfinance institutions, institutional theory.

참고문헌

1.

Abdulai, A., & Tewari, D. D. (2017). Trade-off between outreach and sustainability of microfinance institutions:evidence from sub-Saharan Africa. Enterprise Development and Microfinance, 28(3), 162-181.

2.

Abraham, H., & Balogun, I. (2012). Contribution of microfinance to GDP in Nigeria: Is there any. International Journal of Business and Social Science, 3(17), 167-176.

3.

Ayayi, A. G., & Sene, M. (2010). What drives microfinance institution's financial sustainability. The Journal of Developing Areas, 44(1), 303-324.

4.

Ball, A., & Craig, R. (2010). Using neo-institutionalism to advance social and environmental accounting. Critical Perspectives on Accounting, 21(4), 283-293.

5.

Brau, J. C., & Woller, G. M. (2004). Microfinance: A comprehensive review of the existing literature. The Journal of Entrepreneurial Finance, 9(1), 1-28.

6.

Chakravarty, S., & Pylypiv, M. I. (2015). The role of subsidization and organizational status on microfinance borrower repayment rates. World Development, 66, 737-748.

7.

Chowdhury, P. R. (2007). Group-lending with sequential financing, contingent renewal and social capital. Journal of Development Economics, 84(1), 487-506.

8.

Collett, K. D. (2015). Proposing a freedom from predatory microfinance lending. Ariz. J. Int'l & Comp. L., 32, 277.

9.

De Aghion, B. A., Armendáriz, B., & Morduch, J. (2007). The economics of microfinance. Massachusetts: MIT press.

10.

Delbridge, R., & Edwards, T. (2007). Reflections on developments in institutional theory: Toward a relational approach. Scandinavian Journal of Management, 23(2), 191-205.

11.

DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American sociological review, 48(2), 147-160.

12.

Drukker, D. M. (2003). Testing for serial correlation in linear panel-data models. The stata journal, 3(2), 168-177.

13.

Fernando, N. A. (2006). Understanding and dealing with high interest rates on microcredit: A note to policy makers in the Asia and Pacific region. Retrieved May 22, 2019, from https://think-asia.org/handle/11540/5491

14.

Gibbons, D. S., & Meehan, J. W. (1999). The microcredit summit's challenge: Working toward institutional financial self-sufficiency while maintaining a commitment to serving the poorest families. Journal of Microfinance/ESR Review, 1(1), 8.

15.

Godquin, M. (2004). Microfinance repayment performance in Bangladesh: How to improve the allocation of loans by MFIs. World Development, 32(11), 1909-1926.

16.

Ibtissem, B., & Bouri, A. (2013). Credit risk management in microfinance: The conceptual framework. ACRN Journal of Finance and Risk Perspectives, 2(1), 9-24.

17.

Iezza, P. (2010). Financial sustainability of microfinance institutions (MFIs): an empirical analysis. Copenhagen Business School Master’s Thesis.

18.

Jennings, P. D., & Zandbergen, P. A. (1995). Ecologically sustainable organizations: An institutional approach. Academy of management review, 20(4), 1015-1052.

19.

Knewtson, H., & Qi, H. (2019). Managing risk for sustainable microfinance. The Journal of Risk Finance, 20(1), 2-13.

20.

Lopatta, K., Jaeschke, R., & Chen, C. (2017). Stakeholder engagement and corporate social responsibility (CSR)performance: International evidence. Corporate Social Responsibility and Environmental Management, 24(3), 199-209.

21.

Lounsbury, M. (1997). Exploring the institutional tool kit:The rise of recycling in the US solid waste field. American Behavioral Scientist, 40(4), 465-477.

22.

Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American journal of sociology, 83(2), 340-363.

23.

Meyer, J. W., & Rowan, B. (1991). Institutionalized organizations. and Robert Wuthnow, Meaning and Moral Order. Retrieved May 22, 2019, from https://www.sscnet.ucla.edu/comm/steen/cogweb/Abstr acts/DiMaggio_97.html

24.

Nawaz, A. (2010). Performance of microfinance: the role of subsidies. Savings and Development, 34, 97-138.

25.

North, D. (1990). Institutions and their consequences for economic performance. In K. Cook & M. Levi (Eds.), The limits of rationality (pp. 383–401). Chicago:University of Chicago Press

26.

Nyamsogoro, G. D. (2010). Financial sustainability of rural microfinance institutions (MFIs) in Tanzania. University of Greenwich.

27.

Rivera, J. (2004). Institutional pressures and voluntary environmental behavior in developing countries:Evidence from the Costa Rican hotel industry. Society and Natural Resources, 17(9), 779-797.

28.

Schreiner, M. (2003). Scoring Drop-Out at a Microlender in Bolivia. Savings and Development, 27(2), 101–118.

29.

Scott, W. R. (2008). Institutions and organizations: Ideas and interests(3rd ed.). Los Angeles : Sage Publications.

30.

Tellis, W., & Seymour, A. (2002). Transition from a Microfinance Institution to Regulated Bank:Technology Infrastructure Planning in a Developing Country, Fairfield University, Fairfield, CT, USA. Retrieved from hyyp://proceedings.informingscience.org/IS2002Proceedings/papers/telli211tr ans.pdf

31.

Viswanathan, P., & Shanthi, S. (2017). Modelling Credit Default in Microfinance—An Indian Case Study. Journal of Emerging Market Finance, 16(3), 246-258.

32.

Westphal, J. D., Gulati, R., & Shortell, S. M. (1997). Customization or conformity? An institutional and network perspective on the content and consequences of TQM adoption. Administrative science quarterly, 42(2), 366-394.

33.

Woller, G. M., Dunford, C., & Woodworth, W. (1999). Where to microfinance. International Journal of Economic Development, 1(1), 29-64.

34.

Yunus, M. (2007). Banker to the poor: Micro-lending and the battle against world poverty. New York: Public Affairs.

Asian Journal of Business Environment

논문 투고 OA 정책