A panel analysis of microfinance efficiency measures: Evidence on the effects of unobserved managerial ability

Fall, François Seck;Tchakoute Tchuigoua, Hubert;Vanhems, Anne;Simar, Léopold
(2024) , 22 pages

Files

ISBA_DP_2024-20.pdf
  • Open Access
  • Adobe PDF
  • 1004.24 KB
Download

Details

Authors
  • Fall, François Seck
    Author
  • Tchakoute Tchuigoua, Hubert
    Author
  • Vanhems, Anne
    Author
  • Simar, LéopoldUCLouvain
    Author
Abstract
This study analyzes the impact of unobserved heterogeneity on microfinance efficiency. Using panel data for 168 microfinance institutions (MFIs) over the period 20102015, we examine the persistence of the effect of unobserved heterogeneity on microfinance efficiency. Using recent nonparametric and robust techniques, we identify a latent heterogeneity factor related to the ability of MFI managers to promote efficiency, independent of MFI size, and analyze its impact on MFI inefficiency measures over time. We then assess the robustness of our results to several factors: the MFI status of the MFI (for-profit or nonprofit), the definition of the efficiency measure (social and financial) and an observed degree of heterogeneity captured by the percentage of women on the board. Finally, we analyze the relationship between our unobserved heterogeneity factor and institutional and socio-economic indicators.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Fall, F. S., Tchakoute Tchuigoua, H., Vanhems, A., & Simar, L. (2024). A panel analysis of microfinance efficiency measures: Evidence on the effects of unobserved managerial ability (LIDAM Discussion Paper ISBA 2024/20). https://hdl.handle.net/2078.5/233094