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Religiosity and threshold effect in social and financial performance of microfinance institutions: system GMM and non-linear threshold approaches

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dc.contributor.authorMohammad Ashraful Mobin
dc.contributor.authorSyed Othman Alhabshi
dc.contributor.authorAbul Mansur Mohammed Masih
dc.date.accessioned2016-06-06
dc.date.accessioned2016-07-25T17:23:04Z
dc.date.available2016-06-06
dc.date.available2016-07-25T17:23:04Z
dc.date.disclosure2016-06-06
dc.date.issued2015
dc.description.abstractThe commercialization process and over-emphasis on sustainability apparently improve micro finance Institutions financial performance and the scale in terms of total number of borrowers and average loan size. Whether focusing on financial sustainability is necessarily at the sacrifice of serving less poor clients? Social and finance performance of MFIs depend on the belief and culture of the participant of the society? The inconsistent results of previous studies implicate that linear regressions may be insufficient to explain the sustainability-outreach linkage because of potential non-linear relationship between financial sustainability and average loan size. To solve this puzzle this study employs advanced dynamic difference GMM as well as system GMM along with non linear Hansen threshold technique. The result shows the significant effect of religion on the social and financial performance microfinance institutions, while threshold effect found insignificant. Our findings present important insights for Islamic microfinance managers and donors as well as policy makers of the country to formulate a better policy. Social performance will harmonize the financial performance of microfinance institutions, so the MFIs authorities should not be worried about the financial sustainability while focusing on outreaching the poor.
dc.identifier.citationMobin, M. A., Alhabshi, S. O., & Mohammed Masih, A M. (2015, June 2-4). Religiosity and threshold effect in social and financial performance of microfinance institutions: system GMM and non-linear threshold approaches. [Paper presentation]. 17th Malaysian Finance Association Annual Conference (MFAC) 2015, Kota Kinabalu, Sabah.
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/1214
dc.languageEnglish
dc.language.isoeng
dc.sourceCRP
dc.subjectMicrofinance
dc.subjectIslamic finance
dc.subjectReligion
dc.subjectSystem GMM
dc.subjectNon-linear threshold
dc.titleReligiosity and threshold effect in social and financial performance of microfinance institutions: system GMM and non-linear threshold approaches
dc.typeAcademic Proceeding
dlc.maintopicIslamic microfinance
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic microfinance
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