Are donor funds used effectively? An examination of Islamic and conventional microfinance institutions

IF 2.8 3区 经济学 Q2 BUSINESS, FINANCE
Toka S. Mohamed, M. Elgammal
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Abstract

Purpose This study aims to compare the nexus between donations to Islamic and conventional microfinance institutions (MFIs) and their credit risk, financial performance and social outreach. Design/methodology/approach The authors use fixed effects and two-step system generalized methods of moments models with internal instrumentation. The analysis is conducted on an international sample of 1,519 MFIs in 55 countries during 1999–2019. Findings Islamic MFIs receiving greater donations experience an increase in credit risk, whereas the opposite occurs among their conventional counterparts. Donations are associated with an improvement in the depth of outreach of Islamic MFIs, allowing them to serve a poorer client base, despite a simultaneous decline in the breadth of their outreach. On the other hand, donations improve both the depth and breadth of conventional MFIs outreach. Donations also exhibit a positive relation with productivity, efficiency and sustainability in conventional MFIs. Practical implications This paper addresses a gap in the literature on Islamic MFIs and their use of donor funds by examining how donations contribute to the quality of their credit portfolios, financial performance and social outreach. This study used Ahmed’s (2012, 2017, 2020, 2021) total factor productivity model to capture the impact of donations on the performance of MFIs. Social implications Donations are found to contribute to positive financial inclusion outcomes for both Islamic and conventional MFIs, a promising implication for society and donors alike. Originality/value This paper addresses a gap in the academic literature on Islamic MFIs and their use of donor funds by examining how donations contribute to the quality of their credit portfolios, financial performance and social outreach.
捐助资金是否得到有效利用?对伊斯兰和传统小额信贷机构的考察
目的本研究旨在比较对伊斯兰和传统小额金融机构的捐款与其信用风险、财务绩效和社会外展之间的关系。设计/方法论/方法作者使用固定效应和两步系统广义方法的矩模型与内部仪器。该分析是对1999-2009年期间55个国家的1519家小额金融机构的国际样本进行的。发现接受更多捐款的伊斯兰小额金融机构信贷风险增加,而传统同行的情况恰恰相反。捐款与伊斯兰小额金融机构外联深度的提高有关,使它们能够为较贫穷的客户群服务,尽管其外联广度同时下降。另一方面,捐款提高了传统小额金融机构外联的深度和广度。捐赠也与传统小额金融机构的生产力、效率和可持续性呈正相关。实际含义本文通过研究捐赠如何有助于提高其信贷组合的质量、财务绩效和社会外联,解决了伊斯兰小额金融机构及其捐赠资金使用文献中的空白。这项研究使用Ahmed(2012201720202021)的全要素生产率模型来捕捉捐款对小额金融机构绩效的影响。社会影响发现,捐款有助于伊斯兰和传统小额金融机构实现积极的金融包容性,对社会和捐助者都有很好的影响。独创性/价值本文通过研究捐款如何有助于提高伊斯兰小额金融机构的信贷组合质量、财务业绩和社会外联,解决了有关伊斯兰小额金融组织及其使用捐赠资金的学术文献中的一个空白。
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来源期刊
CiteScore
5.40
自引率
10.00%
发文量
45
期刊介绍: The International Journal of Islamic and Middle Eastern Finance and Management (IMEFM) publishes quality and in-depth analysis on current issues within Islamic and Middle Eastern finance and management. The journal welcomes strong evidence-based empirical studies and results-focused case studies that share research in product development and clarify best practices. The title is also keen to consider work from emerging authors. IMEFM has just also accepted into Clarivate''s SSCI in 2018, and its IF will be available in summer 2019, with citations dating from 2016. The coverage includes but is not limited to: -Islamic finance: Fundamentals, trends and opportunities in Islamic Finance, Islamic banking and financial markets, Risk management, Corporate finance, Investment strategy, Islamic social finance, Financial planning, Housing finance, Legal and regulatory issues, -Islamic management: Corporate governance, Customer relationship management and service quality, Business ethics and corporate social responsibility, Management styles and strategies in Shariah environments, Labour and welfare economics, Political economy. The journal is the only title aiming to give an interdisciplinary and holistic view on Islamic finance and business management practices in order to inform these two intertwined communities.
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