Abstract

http://ssrn.com/abstract=1144762
 
 

References (27)



 
 

Citations (2)



 


 



Microfinance Institutions: Does Capital Structure Matter?


Vicki L. Bogan


Cornell University



Abstract:     
Microfinance Institutions (MFIs) have risen to the forefront as invaluable institutions in the development process. Nevertheless, capital constraints have hindered the expansion of microfinance programs such that the demand for financial services still far exceeds the currently available supply. Moreover, it is observed that microfinance organizations have had various degrees of sustainability. Thus, the question of how best to fund these programs is a key issue. Recognizing the potential of microfinance in the development process, this paper examines the existing sources of funding for MFIs by geographic region, and explores how changes in capital structure could facilitate future growth and improve the efficiency and financial sustainability of MFIs. Using panel data, I establish a link between capital structure and key measures of MFI success. Notably, I find causal evidence supporting the assertion that an increased use of grants by MFIs decreases operational self-sufficiency.

Number of Pages in PDF File: 42

Keywords: Microfinance, Sustainability, Capital Structure

JEL Classification: F3, G21, G32, O1

working papers series


Download This Paper

Date posted: June 16, 2008  

Suggested Citation

Bogan, Vicki L., Microfinance Institutions: Does Capital Structure Matter?. Available at SSRN: http://ssrn.com/abstract=1144762 or http://dx.doi.org/10.2139/ssrn.1144762

Contact Information

Vicki L. Bogan (Contact Author)
Cornell University ( email )
454 Warren Hall
Ithaca, NY 14853
United States
607-254-7219 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 3,541
Downloads: 1,014
Download Rank: 11,050
References:  27
Citations:  2
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.562 seconds