Microfinance institutions and efficiency
Microfinance institutions and efficiency
Microfinance Institutions (MFIs) are special financial institutions. They have both a social nature and a for-profit nature. Their performance has been traditionally measured by means of financial ratios. The paper uses a Data Envelopment Analysis (DEA) approach to efficiency to show that ratio analysis does not capture DEA efficiency.
Special care is taken in the specification of the DEA model. We take a methodological approach based on multivariate analysis. We rank DEA efficiencies under different models and specifications; e.g., particular sets of inputs and outputs. This serves to explore what is behind a DEA score.
The results show that we can explain MFIs efficiency by means of four principal components of efficiency, and this way we are able to understand differences between DEA scores. It is shown that there are country effects on efficiency; and effects that depend on Non-governmental Organization (NGO)/non-NGO status of the MFI.
microfinance, microcredit, DEA, multivariate analysis, efficiency
University of Southampton
Gutiérrez Nieto, Begoña
6322edcb-72fc-4086-8c41-92fffd26f95a
Serrano Cinca, Carlos
323f47f9-a12d-4b59-a15d-6f726083a089
Mar Molinero, Cecilio
5892dc03-ff85-4697-b196-a5925ae53805
2004
Gutiérrez Nieto, Begoña
6322edcb-72fc-4086-8c41-92fffd26f95a
Serrano Cinca, Carlos
323f47f9-a12d-4b59-a15d-6f726083a089
Mar Molinero, Cecilio
5892dc03-ff85-4697-b196-a5925ae53805
Gutiérrez Nieto, Begoña, Serrano Cinca, Carlos and Mar Molinero, Cecilio
(2004)
Microfinance institutions and efficiency
(Discussion Papers in Accounting & Finance, AF04-20)
Southampton, UK.
University of Southampton
40pp.
Record type:
Monograph
(Discussion Paper)
Abstract
Microfinance Institutions (MFIs) are special financial institutions. They have both a social nature and a for-profit nature. Their performance has been traditionally measured by means of financial ratios. The paper uses a Data Envelopment Analysis (DEA) approach to efficiency to show that ratio analysis does not capture DEA efficiency.
Special care is taken in the specification of the DEA model. We take a methodological approach based on multivariate analysis. We rank DEA efficiencies under different models and specifications; e.g., particular sets of inputs and outputs. This serves to explore what is behind a DEA score.
The results show that we can explain MFIs efficiency by means of four principal components of efficiency, and this way we are able to understand differences between DEA scores. It is shown that there are country effects on efficiency; and effects that depend on Non-governmental Organization (NGO)/non-NGO status of the MFI.
More information
Published date: 2004
Keywords:
microfinance, microcredit, DEA, multivariate analysis, efficiency
Identifiers
Local EPrints ID: 36198
URI: http://eprints.soton.ac.uk/id/eprint/36198
PURE UUID: a0c7fabc-ff47-44fb-a7c3-9ed22b390280
Catalogue record
Date deposited: 24 May 2006
Last modified: 15 Mar 2024 07:56
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Contributors
Author:
Begoña Gutiérrez Nieto
Author:
Carlos Serrano Cinca
Author:
Cecilio Mar Molinero
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