Reciprocity between financials and Social Performance in Microfinance Institutions: Transparency and Ownership Structure used as Moderating Variables

Authors

  • Saifullah Shakir Hamdard University HIMS Karach
  • Ghulam Abbas Faculty of Business Administration, IBA Sindh University Jamshoro
  • Rashid Hayat The Islamia University Bahawalpur, Pakistan
  • Mohsin Ali Universiti of Utara Malaysia (UUM)
  • Muhammad Kamran The Islamia University Bahawalpur, Pakistan

DOI:

https://doi.org/10.52700/pjh.v2i2.72

Keywords:

Micro finance Loan, Social performance, Ownership structure, Transparency

Abstract

The objective is to check performance of microfinance loan in context of social performance and its various dimensions i.e health, education, clean water and women empowerment. Likewise study also test moderating effect of loan transparency and ownership structure between micro-finance loan and social performance. The survey-based approach was used with a sample size of 350. Data was collected through self-administered questionnaires from the client of a microfinance institution in a different region of Sindh. In response 273 completed questionnaires were received from respondent and response rate was 78%. Among those 273 questionnaires, 19 were unengaged responses so were considered unsuitable for analysis and reaming 254 questionnaire were used for data analysis. The Smart PLS Technique was used for data estimation in this study. Findings of the existing study portrays significant impact of microfinance loan on social performance as well as on its various dimensions i.e Health, Education, Clean Water and women empowerment. The moderating impact of transparency is positively significant in social performance, and the moderating impact of ownership structure in social performance is showing negative significant impact. The result of this study can lead to significant contributions and provide a better understanding and influence of transparency and ownership structure on the social performance of microfinance loans as well as dimensions of social performance. Financial sources of micro finance loan would be beneficial for poor people, micro enterprise and epically for empowerment of women in emerging economy. Micro finance institutions should control in interest rate and create an awareness regarding utilization of loan and timely repayment among their customers.

Author Biographies

Saifullah Shakir, Hamdard University HIMS Karach

Faculty of Management Science

 

                             

Ghulam Abbas, Faculty of Business Administration, IBA Sindh University Jamshoro

Faculty of Business Administration

 

 

Rashid Hayat, The Islamia University Bahawalpur, Pakistan

Institute of Business Management and Administrative Sciences (IBMAS)

 

 

Mohsin Ali, Universiti of Utara Malaysia (UUM)

 School Economics Finance and Banking (SEFB)

 

 

Muhammad Kamran, The Islamia University Bahawalpur, Pakistan

Institute of Business Management and Administrative Sciences (IBMAS)

 

 

Published

2021-12-16

How to Cite

Saifullah Shakir, Ghulam Abbas, Rashid Hayat, Mohsin Ali, & Muhammad Kamran. (2021). Reciprocity between financials and Social Performance in Microfinance Institutions: Transparency and Ownership Structure used as Moderating Variables. PERENNIAL JOURNAL OF HISTORY, 2(2), 210-236. https://doi.org/10.52700/pjh.v2i2.72