Capital structure and microfinance performance: a cross-country analysis and case study of Vietnam

[摘要] Due to the limitations of the extant literature on the impact of microfinance funding on performance, with particular regard to a cross-country analysis and case study of Vietnam, this thesis has been written in an effort to fill this major gap by conducting an empirical investigation into the link between funding and the performance of microfinance institutions. It also employs the most common indicators for microfinance performance and introduces new evidence and possible explanations from an explicit perspective that might be relevant in the context of scale of operation, profit status, regulated status and legal status. First, the link between funding and microfinance performance varies with the heterogeneity of microfinance institution’ characteristics. Second, profitable and regulated microfinance institutions which take on considerably more commercial funds are therefore shown to have higher sustainability, efficiency and outreach. Third, a large scale of operation helps microfinance institutions achieve higher efficiency, profitability, sustainability and outreach (breadth and depth). Fourth, there is no trade-off between the breadth of outreach and efficiency. Fifth, larger loan sizes are associated with higher loan costs. Sixth, the global financial crisis has had a minor impact on the performance of microfinance institutions since they have a low level of self-sufficiency, associated with a low degree of financial integration.

[发布机构] University:University of Birmingham;Department:Birmingham Business School, Department of Economics

[关键词] H Social Sciences;HB Economic Theory