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RESEARCH PRODUCT

Should Microfinance Institutions diversify or focus? A global analysis

Stephen Zamore

subject

Microfinance050208 financeFinancial performance05 social sciencesDiversification (finance)Financial systemlaw.inventionlaw0502 economics and businessSustainabilityBusiness Management and Accounting (miscellaneous)RevenueProfitability indexBusiness050207 economicsFinance

description

Abstract This paper investigates the effects of revenue diversification on the financial performance of microfinance institutions (MFIs). The long-standing question about whether financial institutions should diversify or focus is a topic of ongoing debate. Using a global sample of MFIs, we investigate which view is appropriate for microfinance institutions. The results show that, diversification across revenue streams improves sustainability and profitability of MFIs. This suggests that revenue diversification is an important strategy for the sustainability of microfinance.

yearjournalcountryeditionlanguage
2018-12-01
http://hdl.handle.net/11250/2599452