Record Details

Social Performance of Microfinance Institutions (MFIs): Does Existing Practice Imply a Social Objective?

American Journal of Business and Management

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Field Value
 
Title Social Performance of Microfinance Institutions (MFIs): Does Existing Practice Imply a Social Objective?
 
Creator Thrikawala, Sujani; Department of Finance, Waikato Management School, University of Waikato, New Zealand
Locke, Stuart; Department of Finance, Waikato Management School, University of Waikato, New Zealand
Reddy, Krishna; Department of Finance, Waikato Management School, University of Waikato, New Zealand
 
Subject —
Microfinance institutions (MFIs), social performance, financial performance, non-governmental organisations (NGOs), non-banking financial institutions (NFBIs).
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Description Many microfinance institutions (MFIs) are currently drifting away from their original mission of alleviating poverty. The objective of this article is to identify and update significant social performance (SP) for micro-finance institutions (MFIs) by viewing social performance measures as a way to address the development of MFIs. Unlike traditional performance measurements, social performance measurements are more allied with the organisation’s social and development goals. This study has therefore reviewed prior empirical studies and consultancy reports dealing with poverty alleviation to determine important social performance measurements for MFIs to achieve their social goals. Further, this study scrutinises 415 MFIs that have reported their social performance in the Microfinance Information Exchange (MIX) database in 2008 and 2009. The findings have revealed that from 2008 to 2009 the number of MFIs reporting social performance increased by 72 per cent; 80 per cent of them are Non-governmental Organisations (NGOs) and Non-banking Financial Institutions (NFBIs). This study therefore provides direction for future research in performance assessment, balancing social and financial objectives in the microfinance industry. It is also a step in conducting more research and recommending regulation of the social performance of MFIs that will require them to engage in more empirical research work using micro-econometrics techniques in the future to support the available conceptual literature.
 
Publisher World Scholars
 
Contributor —
 
Date 2013-05-30
 
Type Peer-reviewed Article
 
Format application/pdf
 
Identifier http://wscholars.com/index.php/ajbm/article/view/285
10.11634/216796061504285
 
Source American Journal of Business and Management; Vol 2, No 2 (2013); 173-180
 
Language en
 
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