Effects of Loan Delinquency and National Culture on the Relationship Between Outreach and Sustainabi...

مرکز و کتابخانه مطالعات اسلامی به زبان های اروپایی

منو

" Effects of Loan Delinquency and National Culture on the Relationship Between Outreach and Sustainability of Microfinance Institutions "
Zainuddin, Mohammad Yasin, Ida Md

Document Type	:	Latin Dissertation
Language of Document	:	English
Record Number	:	1058970
Doc. No	:	TL58087
Main Entry	:	Zainuddin, Mohammad
Title & Author	:	Effects of Loan Delinquency and National Culture on the Relationship Between Outreach and Sustainability of Microfinance Institutions\ Zainuddin, MohammadYasin, Ida Md
College	:	Universiti Putra Malaysia (Malaysia)
Date	:	2019
Degree	:	M.S.
student score	:	2019
Note	:	164 p.
Abstract	:	The microfinance industry in recent years has witnessed a paradigm shift from subsidized credit to sustainable for-profit microfinance. The increasingly commercial approach raises concern over whether sustainability comes at the expense of outreach to the poorest. The ability of microlenders to simultaneously achieve the dual missions of commercial profit and social outreach is highly debated. This thesis argues that sustainability-seeking microbanks move upmarket and end up excluding the poorest as they find it more attractive to issue larger loans to relatively richer clients. So, sustainability comes at the expense of outreach and there is a trade-off between the two goals. The trade-off is attributed to the high transaction cost of small loans; but this study suggests that loan delinquency also plays an important role in explaining the relationship. Considering microfinance’s deep embeddedness in cultural contexts, the thesis also maintains that the outreach-sustainability relationship can be affected by national culture where microfinance institutions are located. The central aim of this research, therefore, is to empirically test the direct effect of outreach on microfinance sustainability and the mediating and moderating effects of loan delinquency and national culture respectively on this effect. The thesis uses four econometric models and undertakes a rigorous quantitative analysis of a global dataset of microfinance firms. The design of this research is explanatory in nature, and linear panel regression technique is used for analyzing the data. The findings confirm the existence of trade-off as well as the hypothesized effects of delinquency and culture. Given the current knowledge gaps and the applied implications of the trade-off, this study is both of theoretical and practical significance. The research provides a deeper insight into the trade-off debate and contributes to literatures of both microfinance and cross-cultural management.
Descriptor	:	Economics
	:	Finance
	:	Management
	:	Social research
Added Entry	:	Yasin, Ida Md
Added Entry	:	Universiti Putra Malaysia (Malaysia)