Demystifying the Trade-Off Debate in Financial Sustainability and Social Outreach and Ranking of Indian MFIs: A Bootstrap DEA Framework

IF 2.5 Q2 ECONOMICS
Asif Khan, Mustafa Raza Rabbani, Rashed Aljalahma, Sabia Tabassum, Ahmad Al-Hiyari
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Abstract

This study aims to demystify the financial sustainability social outreach trade-off debate in the case of Microfinance Institutions (MFIs) operating in India. In particular, the authors estimate the bias-adjusted efficiency of MFIs operating from 2010 to 2019 to scrutinize the mutual exclusivity between their twin aspects. Further, the study deploys bootstrap Data Envelopment Analysis (DEA) to estimate the robust efficiency estimate of individual MFIs. Further, the study uses a multi-dimensional approach to examine the trade-off debate between sustainability and outreach. Additionally, the study also ranks the MFIs based on their dual mission. The results suggest that the Indian MFIs are better at handling the financial dimension than the social aspect of MFIs. Moreover, the article claims the absence of a trade-off between the two goals of MFIs in India. Suryoday is the top-performing MFI in terms of financial and social aspects, followed by M-power. Further, the policymakers, top management, and microfinance professionals must redesign the regulatory and operational structure to ensure the maximum social outreach of MFIs without hampering their financial sustainability.

Abstract Image

揭开印度小额信贷机构在金融可持续性和社会拓展及排名中的权衡辩论的神秘面纱:引导式 DEA 框架
本研究旨在以在印度运营的小额信贷机构(MFIs)为例,揭开金融可持续性与社会拓展权衡辩论的神秘面纱。作者特别估算了 2010 年至 2019 年小额信贷机构的偏差调整效率,以仔细研究这两个方面之间的互斥性。此外,研究还采用了自举数据包络分析法(DEA)来估算单个小额贷款机构的稳健效率估计值。此外,本研究还采用多维方法来研究可持续性与外联之间的权衡问题。此外,研究还根据小额贷款机构的双重使命对其进行了排名。研究结果表明,印度小额金融机构在处理金融方面的能力强于社会方面的能力。此外,文章还称印度的小额金融机构在这两个目标之间没有权衡。在金融和社会方面,Suryoday 是表现最好的小额金融机构,其次是 M-power。此外,政策制定者、高层管理者和小额信贷专业人士必须重新设计监管和运营结构,以确保小额信贷机构在不影响其财务可持续性的前提下最大限度地拓展社会影响力。
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来源期刊
CiteScore
3.00
自引率
0.00%
发文量
34
期刊介绍: The current remarkable growth in the Asia-Pacific financial markets is certain to continue. These markets are expected to play a further important role in the world capital markets for investment and risk management. In accordance with this development, Asia-Pacific Financial Markets (formerly Financial Engineering and the Japanese Markets), the official journal of the Japanese Association of Financial Econometrics and Engineering (JAFEE), is expected to provide an international forum for researchers and practitioners in academia, industry, and government, who engage in empirical and/or theoretical research into the financial markets. We invite submission of quality papers on all aspects of finance and financial engineering. Here we interpret the term ''financial engineering'' broadly enough to cover such topics as financial time series, portfolio analysis, global asset allocation, trading strategy for investment, optimization methods, macro monetary economic analysis and pricing models for various financial assets including derivatives We stress that purely theoretical papers, as well as empirical studies that use Asia-Pacific market data, are welcome. Officially cited as: Asia-Pac Financ Markets
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