Financial Performance of Microfinance Institutions in Senegal and Ivory Coast: What are the Determinants?

Performance financière des Institutions de Microfinance au Sénégal et en Côte d’Ivoire: Quels en sont les déterminants ?

Amon Aniké Deh and Ndeye Paane Khouma
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Amon Aniké Deh: UASZ - Université Assane Seck de Ziguinchor [Sénégal]
Ndeye Paane Khouma: UCAD - Université Cheikh Anta Diop de Dakar [Sénégal]

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Abstract: The purpose of this article is to study the determinants of the financial performance of MFIs in Senegal and Côte d'Ivoire, using the institutionalist approach. Our epistemological posture is positivism with a hypothetico-deductive reasoning and a quantitative approach. The data come from the BCEAO database and cover a sample of nineteen (19) MFIs during the periods from 2016 to 2019. The results of the compound error model show that size, 12_24 month portfolio at risk, capital structure, liquidity, and Doing Business index have a significant influence on the financial performance of MFIs. However, robustness tests with quantile regression at the three distribution thresholds (25%, 50%, and 75%) show that only the MFI's size, its 12-24 month PAR, and its creditworthiness have a significant impact on its financial performance. The knowledge of these factors could be useful to the managers of these MFIs in the adoption of strategies to ensure good financial viability, which is a guarantee of their sustainability and indispensable to ensure their social mission effectively.

Keywords: Microfinance; Financial performance; Social performance; WAEMU; Regression; Performance financière; Performance sociale; UEMOA; Régression (search for similar items in EconPapers)
Date: 2023-07-03
New Economics Papers: this item is included in nep-cfn, nep-mfd and nep-pay
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Published in Revue africaine de management = African management review, 2023, 9 (1), ⟨10.48424/IMIST.PRSM/ram-v1i9.40402⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04363597

DOI: 10.48424/IMIST.PRSM/ram-v1i9.40402

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