Are Indian Microfinance Institutions Efficient? A Two-Stage Double Bootstrapped DEA Based Analysis

Shailja Agarwal () and Pankaj K. Agarwal ()
Additional contact information
Shailja Agarwal: Institute of Management Technology
Pankaj K. Agarwal: Indian Institute of Management

A chapter in Financial Inclusion in Emerging Markets, 2021, pp 165-180 from Springer

Abstract: Abstract Microfinance is an important tool for achieving financial well-being in society as its aim is to contribute to the financial inclusion of poor households and small businesses. However, their ability to contribute to financial well-being is limited by how efficient their operations are. The study examines technical efficiency of microfinance institutions in India using non-parametric double bootstrap Data Envelopment Analysis (DEA) for the period 2017–18. Our sample consists of all Indian MFI firms reporting their performance data voluntary to MIX database. Our main finding is that the MFIs achieve their social objectives efficiently if they are financially efficient too. We further investigate whether efficiency differs due to firm characteristics like ownership, size, age and leverage and find that Capital Structure and Profitability are most important determinants of social and financial efficiency. These results could inform policy on MFI funding and operations alike.

Keywords: Data Envelopment Analysis; Microfinance; Bootstrap (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-981-16-2652-4_8

Ordering information: This item can be ordered from
http://www.springer.com/9789811626524

DOI: 10.1007/978-981-16-2652-4_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().