Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/278098 
Erscheinungsjahr: 
2023
Quellenangabe: 
[Journal:] International Journal of Management, Economics and Social Sciences (IJMESS) [ISSN:] 2304-1366 [Volume:] 12 [Issue:] 3 [Year:] 2023 [Pages:] 184-216
Verlag: 
IJMESS International Publishers, Jersey City, NJ
Zusammenfassung: 
The purpose of this paper was to investigate the determinants of risk-taking in the context of Islamic and conventional microfinance institutions (MFIs) while considering the capital structure's role in moderating the risk-taking decisions' effect on financial performance. Fixed and Random effects GLS with a first-order autoregressive disturbance was used to empirically analyze the impact of risk-taking on performance as well as the role of capital structure in moderating the effects on the relationship between non-performing loans and performance. The dataset covers 179 Conventional MFIs and 57 Islamic MFIs in four different regions over the 2005-2015 period. Risk-taking determinants exposed by high loan growth, low-interest margin, and low loan loss provisions were revealed to have negative consequences on risk exposures for both MFIs on average. These indicators are significantly and positively related to a lower loan portfolio quality. Therefore, this risk-taking behavior harms these MFIs' performance. The moderating effect of capital structure within leverage funding on the relationship between non-performing loan indicators and financial performance was confirmed in Conventional microfinance institutions. This paper can be considered a pioneer attempt to evaluate the determinants of risk-taking decisions and their implications on the financial performance and sustainability of microfinance institutions.
Schlagwörter: 
Credit risk taking
capital structure
non-performing loans
performance
microfinance institutions
JEL: 
G21
G23
G41
Persistent Identifier der Erstveröffentlichung: 
Creative-Commons-Lizenz: 
cc-by-nc Logo
Dokumentart: 
Article

Datei(en):
Datei
Größe
441.64 kB





Publikationen in EconStor sind urheberrechtlich geschützt.