The relationship between microfinance mission drift and financial returns to stakeholders

Serrano-Cinca, Carlos (Universidad de Zaragoza) ; Fuertes-Callén, Yolanda (Universidad de Zaragoza) ; Cuéllar-Fernández, Beatriz (Universidad de Zaragoza)

Resumen: Some microfinance institutions (MFIs) can drift from their social mission, generating well-studied effects for their borrowers. We focus on the lesser-known effect of mission drift on the financial return to other stakeholders (employees, government, micro-savers, and banking creditors). Using a sample of 534 MFIs, we calculated the economic value distributed by the MFI to these stakeholders by considering salaries, taxes, and interest paid. We found a negative relationship between average loan size and return to employees (RTE), government, and banking creditors, and a positive relationship between women borrowers and RTE and government. This is explained by the fact that mission-focused MFIs are usually small, labor-intensive institutions with a stable business model. We found a positive relationship between average loan size and return to micro-savers, and a negative relationship between women borrowers and return to micro-savers. The reason is that many mission-focused MFIs do not offer micro-savings, undermining financial inclusion.

Idioma: Inglés

DOI: 10.1177/08997640221138763

Año: 2022

Publicado en: NONPROFIT AND VOLUNTARY SECTOR QUARTERLY (2022), 089976402211387 [24 pp.]
ISSN: 0899-7640

Factor impacto JCR: 2.8 (2022)

Categ. JCR: SOCIAL ISSUES rank: 16 / 44 = 0.364 (2022) - Q2 - T2

Factor impacto CITESCORE: 5.0 - Social Sciences (Q1)

Factor impacto SCIMAGO: 1.17 - Social Sciences (miscellaneous) (Q1)

Financiación: info:eu-repo/grantAgreement/ES/DGA/S38-20R
Financiación: info:eu-repo/grantAgreement/ES/MCIU/RTI2018-093483-B-I00
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2021-SOC-03

Tipo y forma: Article (Published version)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)