92 research outputs found
On the negative relation between investment-cash flow sensitivities and cash-cash flow.
We predict and find empirical support for a negative relation between the firm’s investment-cash flow sensitivity and cash-cash flow sensitivity, two measures suggested to capture the concept of financing constraints. This negative relation on the firm-level stems from the fact that both investments and the cash account are uses of funds competing for limited available cash flows. Additionally, we find that the investment-cash flow sensitivity is a better predictor for the firm’s constraint-status than the cash-cash flow sensitivity for a longitudinal sample of 1,233 U.S.-based listed firms using an evaluative framework based upon ex-post evaluation of the firmvarying sensitivities.financing constraints; investment-cash flow sensitivities; cash-cash flow sensitivities; firm-varying sensitivities;
Performance and international investments in microfinance institutions
Preprint of the published version of an article from Strategic ChangeUsing data from 319 microfinance institutions (MFIs) in 68 developing countries, we study the degree to which international debt investments are related to the financial and social performances of MFIs. We find that commercial investments are mainly related to financial performance and level of professionalisation of the MFIs. The targeting of women is not a priority, even though international commercial investors target MFIs that provide small loans. Subsidised investments, however, are mainly driven by the targeting of women, while financial performance and the level of professionalisation of the MFI is not a priority
The Determinants Of Interest Rates In Microfinance: Age, Scale And Organisational Charter
This study compares the responsiveness of microcredit interest rates to age, scale of lending and organisational charter. It uses an unbalanced panel of 300 MFIs from 107 developing countries from 2005 to 2015. Three key trends emerge from the results of a 2SLS regression. First, the adoption of formal microbanking practices raises interest rates compared with other forms of microlending. Second, large scale lending lowers interest rates only for those MFIs that already hold legal banking status. Third, age of operation in excess of eight years exerts a negative impact on interest rates, regardless of scale and charter type of MFI. Collectively, our results indicate that policies which incentivise mature MFIs to share their knowledge will be more effective in helping the nascent institutions to overcome their cost disadvantages compared with reforms to transform them into licensed banks. For MFIs which already hold permits to operate as banks, initiatives to increase loan sizes are key strategic pricing decisions, irrespective of the institution’s age. This study is original in its differentiation of the impact on interest rates of regulations which promote formal banking principles, credit market extension vis-à-vis knowledge sharing between mature and nascent MFIs
The law of equal opportunities or unintended consequences?:The impact of unisex risk assessment in consumer credit
Microfinance regulation and social sustainability of microfinance institutions: the case of Nigeria and Zambia
This study examines the effect of regulations on microfinance institutions in Nigeria and Zambia by focusing on the post-regulation experiences and reflections of the microfinance institutions (MFIs) and their regulators. Based on in-depth interviews with the Central Banks as regulators, MFI managers, practitioners and apex microfinance associations, the study finds that regulations in both countries have managed to professionalize the sector, but their effectiveness in augmenting the centrality of social goals to microfinance and MFIs remains doubtful. The poorly designed regulations are not only undermining social goals but also sending wrong signals to would be social investors, with implications for the social image of the industry. The study further finds that regulations have neither speeded the emergence of sustainable MFIs (especially in Zambia) nor accelerated the sectors’ outreach to the poor and the financially excluded. Additionally, considerable levels of political interference and poor regulation have led to unintended consequences to the sector, further frustrating the ultimate goal of extending financial services to the poor. These findings have policy and practical implications for how microfinance engages with the regulatory logic and continues to serve those at the bottom of the pyramid
The effects of religion on development efforts : evidence from the microfinance industry and a research agenda
This study responds to the need for more empirical knowledge pertaining to the effect of religion on development efforts. We use data from the microfinance industry to study performance differences between Christian and secular Microfinance Institutions (MFIs). We find that Christian MFIs have significantly lower funding costs and consistently underperform in terms of financial profit indicators. Contrary to our hypotheses Christian MFIs are as efficient in assuring loan repayment and their average loan sizes are on par with those of their secular peers
Redelijke aanpassingen, evenredigheid en de rol van de rechter.
The central concept of this research project is the 'reasonable accommodation duty'. It is a legal obligation that originated in the USA and has found its entry into the Belgian legal system through EU Directive 2000/78.
In the employment sphere, the reasonable accommodation dutyrequires employers
to take the necessary measures to attenuate the hindrances people with disabilities face in order to allow them to fully participate in the workforce. Examples are: lowering thresholds, changing work schedules, supplying language interpreters etc. In some legal systems, the duty exists in other contexts as well, for example in education, health care, cultural life etc.
Courts seem to struggle with the concept because the legislature gave little guidance concerningthe application. The concept is vague which makes it inaccessible to persons with disabilities and legal practioners. As a result of this, an individual with a disability often does not receive the protection he is entitled to. The goal of this research was to find a workable interpretation of this duty in order to substantiate the obligation that already exists. The research is based on a combination of the relevant legal theory and comparative research on the legal practice in a selection of legal systems and instruments.
Firstly the reasonable accommodation duty, its sources, the conditions, the exception of the disproportionate burden, the procedural rules and the legal consequences of a breach weredescribed for a number of legal instruments and systems: the UN Convention on the Rights of Persons with Disabilities, US, Canada, EU, Netherlands and Belgium.
Since the reasonable accommodation duty ispart of the right to equality, the research focused in Part II. on the different theories concerning equality and the way in which the theory is reflected in the reasonable accommodation duty. The different theoriesconcerning disability were also explored and connected to the reasonable accommodation duty.
Part III. contains a discussion of the proportionality analysis which clearly underlies the considerations concerning reasonable accommodations and the exception of the disproportionate burden. The starting point is the general proportionality analysis as described by Alexy innbsp;'A Theory of Constitutional Rights'. To increase the predictability of the analysis, a catalogue is formed of factors that according to the relevant caselaw are regularly weighed when considering a reasonable accommodation. In addition the duties of the parties in the prelitigation phase as well as in court are explained in relation to the explicit application of the proportionality
analysis.
In Part IV. the role of the judge in this matter was clarified.The limits to a judge's duties were explored in this matter. The discussion concerned among others the acceptability of implications of a decision for legal actors who were not a party to a case and the extent to which the judge can order redress. These limits were seen as the borders of a judge's authority. Within these limits, the intensity of the test can vary. In an attempt to increase the predictability of the proportionality analysis even more, the factors that can influence the intensity in the matter of the reasonable accommodation duty, and the way a judge chooses his position because of these factors, were discussed and clarified.
The research project resulted in normative conclusions with relevance for the Flemish, Belgian and European legal order, which were formulated in Part V.status: publishe
Women and repayment in microfinance: A global analysis
This paper uses a global data set of 350 microfinance institutions (MFIs) in 70 countries to study the common belief that women are generally better credit risks in microfinance than men. The results confirm that a higher percentage of female clients in MFIs is associated with lower portfolio risk, fewer write-offs, and fewer provisions, all else being equal. Interaction effects reveal that, while focus on women is generally associated with enhanced repayment, this trend is stronger for nongovernmental organizations, individual-based lenders, and regulated MFIs
Gender bias in microfinance
We provide empirical evidence on focusing on women in microfinance and its consequences for
microfinance institutions (MFIs). Based on a global dataset, the results indicate that a focus on women is
associated with group-lending methods, international orientation, smaller loans, and non-commercial legal
status. We find that a focus on women significantly improves repayment but does not enhance overall financial
performance because of higher relative costs. Moreover, the higher relative costs do not stem from servicing
women per se but from the smaller loans offered to women and the group-lending methodology practised by
MFIs focusing on wome
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