We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE IMPACT OF CAPITAL STRUCTURE ON MICRO FINANCE INSTITUTION PERFORMANCE: EVIDENCE FROM ETHIOPIA.
- Authors
GUDU, GEMECHU FEYISSA
- Abstract
This paper examined the impact of capital structure on MFIs performance, using ROA and ROE as a proxy to measure financial performance. The study used a penal data of 16 sampled MFIs for the period 2003 to 2009 and a random effect GLS regression is employed as a method of data analysis. The study finds that a negative and significant relation between total debt and both ROA and ROE. The result also shows that a negative and significant relationship between capital adequacy, portfolio quality and ROA in similar manner, a negative and significant relationship between asset tangibility, liquidity and ROE are observed. However, firm age, ownership and both ROA and ROE are identified to have a significant positive impact on performance. Whereas, firm size measured by log of total asset has inconclusive result because of the complex objectives of the firm's. The study contributes to the relationship between capital structure and performance of MFIs, which has been, less explored in prior studies.
- Subjects
INDIA; MICROFINANCE; CAPITAL structure; FINANCIAL institutions; RATE of return; FINANCIAL performance; LIQUIDITY (Economics)
- Publication
CLEAR International Journal of Research in Commerce & Management, 2013, Vol 4, Issue 7, p91
- ISSN
2249-4561
- Publication type
Article