Should microfinance institutions diversify or focus? A global analysis

Stephen Zamore

Research in International Business and Finance, 2018, vol. 46, issue C, 105-119

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.

Keywords: Revenue diversification; Financial performance; Microfinance; Sustainability; Profitability (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531917304919
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:46:y:2018:i:c:p:105-119

DOI: 10.1016/j.ribaf.2017.12.001

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().