Microfinance institutions and efficiency

Gutierrez-Nieto, B. and Serrano-Cinca, C. and Mar-Molinero, C. (2007) Microfinance institutions and efficiency. Omega-International Journal of Management Science, 35 (2). pp. 131-142. ISSN 0305-0483 . (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1016/j.omega.2005.04.001

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 goes beyond simple financial ratios using a data envelopment analysis (DEA) approach to measure the efficiency of MFIs. 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.

Item Type: Article
Uncontrolled keywords: DEA; efficiency; banking; operations management; microfinance; microcredit
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculties > Social Sciences > Kent Business School > Management Science
Depositing User: Suzanne Duffy
Date Deposited: 14 May 2008 06:56
Last Modified: 14 Jan 2010 14:10
Resource URI: http://kar.kent.ac.uk/id/eprint/3061 (The current URI for this page, for reference purposes)
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