Abstract
PurposeThis paper aims to investigate whether revenue diversification affects the financial sustainability of microfinance institutions (MFIs).Design/methodology/approachThe study uses a worldwide panel data set of 443 MFIs in 108 countries for the period 2013–2018 and two-step system Generalized Method of Moments estimation model.FindingsThe study finds that revenue diversification has a significant and positive effect on the financial sustainability of MFIs.Practical implicationsThe findings of this study actually offer important managerial and policy lessons on MFIs’ financial sustainability. Microfinance managers and policymakers should consider revenue diversification as a strategy through which MFIs can attain financial sustainability instead of overreliance on donations and government subsidiesOriginality/valueUnlike previous studies that examined revenue diversification in the context of banking firms, this study contributes to literature by examining the impact of revenue diversification of the financial sustainability of MFIs.
Reference64 articles.
1. Non-interest income and bank lending;Journal of Banking and Finance,2018
2. Microfinance intervention,2017
3. ACCION (2004), “Optimal range for return on asset”, ACCA_CGA_CPA. pdf, available at: http://www.mixmarket.org/sites/default/files/medialibrary/20501.701/ACF_rating_report_final.pdf.
4. Is there a trade-off between financial performance and outreach in South Asian microfinance institutions?;The Journal of Developing Areas,2014
5. Revenue diversification in public higher learning institutions: an exploratory Malaysian study;Journal of Applied Research in Higher Education,2019
Cited by
25 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献