Do Female Loan Officers Mitigate Social-Financial Trade-Offs in Microfinance?

10 Pages Posted: 11 Sep 2021 Last revised: 29 Nov 2021

See all articles by Moez Bennouri

Moez Bennouri

Montpellier Business School

Anastasia Cozarenco

Montpellier Business School; Université Montpellier II - Montpellier Research in Management (MRM); Université Libre de Bruxelles (ULB) - CERMi (Centre for European Research in Microfinance)

Samuel Anokye Nyarko

Montpellier Business School

Naome Otiti

University of Agder

Abstract

This paper revisits social-financial trade-offs in microfinance. We theorize that workforce diversity mitigates the divergence between social and financial performance levels. We test our prediction by performing fixed-effects generalised least squares regressions on a global sample of 1257 microfinance institutions (MFIs) in 107 countries over the period 2010–2018. Confirming our prediction, the empirical results show that the proportion of female loan officers attenuates the negative relationship between the social performance and the financial performance of MFIs. We attribute our findings to the personal characteristics of female loan officers and the high repayment rates of loans that are disbursed and monitored by them. Our findings draw attention to the uneven manifestation of social-financial trade-offs among MFIs.

Keywords: Microfinance, Trade-offs, Female loan officers, Social performance, Financial performance

Suggested Citation

Bennouri, Moez and Cozarenco, Anastasia and Nyarko, Samuel Anokye and Otiti, Naome, Do Female Loan Officers Mitigate Social-Financial Trade-Offs in Microfinance?. Available at SSRN: https://ssrn.com/abstract=3921675

Moez Bennouri

Montpellier Business School ( email )

2300 Avenue des Moulins
Montpellier, 34080
France

Anastasia Cozarenco (Contact Author)

Montpellier Business School ( email )

Université Montpellier II - Montpellier Research in Management (MRM) ( email )

Place Eugène Bataillon
Montpellier, 34095
France

Université Libre de Bruxelles (ULB) - CERMi (Centre for European Research in Microfinance) ( email )

Campus du Solbosch
Avenue F.D. Roosevelt 21 - CP145/1
B-1050 Brussels
Belgium

Samuel Anokye Nyarko

Montpellier Business School ( email )

Naome Otiti

University of Agder

Serviceboks 422
N-4604 Kristiansand, VEST AGDER 4604
Norway

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
156
PlumX Metrics