Performance and International Investments in Microfinance Institutions
Working Paper N° 11/054
30 Pages Posted: 25 Jan 2017
Date Written: 2011
Abstract
Using data from 319 microfinance institutions (MFIs) in 68 developing countries, we study the degree to which international debt investments are related to the financial and social performances of MFIs. We find that commercial investments are mainly related to financial performance and level of professionalisation of the MFIs. The targeting of women is not a priority, even though international commercial investors target MFIs that provide small loans. Subsidised investments, however, are mainly driven by the targeting of women, while financial performance and the level of professionalisation of the MFI is not a priority.
Keywords: microfinance, commercialisation, socially responsible investors, microfinance investment vehicles, social performance
JEL Classification: G11, G23, L2, O16, O17
Suggested Citation: Suggested Citation