Research Article
Role of Microfinance Institutions in Ethiopian Economy: A Review
Gizaw Fetene Zeleke*,
Shibeshi Fekadu Tolesa
Issue:
Volume 9, Issue 1, March 2024
Pages:
1-9
Received:
1 February 2024
Accepted:
24 February 2024
Published:
13 March 2024
Abstract: This work reviews the role of microfinance institutions in the Ethiopian economy, which was done by using a balanced scorecard (BSC) performance review approach that integrates both financial and nonfinancial metrics. The BSC framework of the review was developed using a total of performance indicators that were equally categorized under BSC perspectives (financial, customer, internal business processes, and learning and growth). The developed framework was applied to MFIs operating in Ethiopia, which have head offices in all regional capitals of the country and report to the Association of Ethiopian Microfinance Institutions (AEMFI) starting in 2010–2012 consecutively. The work of the review shows that based on their financial role, on average, the institutions reviewed are sustainable with high relative productivity and low profitability. The average non-financial performance is also high, indicating that the reviewed institutions are highly performing in both non-financial and financial measures. Beside the role performance, the work of this review confirmed the relationship assumption of BSC perspectives and it shows a positive correlation among them. The review concludes that comprehensive performance is observed when it is measured in a collective way. So, Ethiopian MFIs suggested paying attention to the use of BSC as a performance measurement tool and as a hub for specified role indicators that need enhancement.
Abstract: This work reviews the role of microfinance institutions in the Ethiopian economy, which was done by using a balanced scorecard (BSC) performance review approach that integrates both financial and nonfinancial metrics. The BSC framework of the review was developed using a total of performance indicators that were equally categorized under BSC perspe...
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Research Article
The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda
Tosam Joseph Ngong*,
Ndamsa Dickson Thomas*
Issue:
Volume 9, Issue 1, March 2024
Pages:
10-20
Received:
13 October 2022
Accepted:
11 November 2022
Published:
19 March 2024
DOI:
10.11648/j.jbed.20240901.12
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Views:
Abstract: This paper titled the effects of dividend policy on the growth of micro financial institutions in Bamenda has the objectives to look at the effects of dividend rate on the growth of MFIs Bamenda and the effect of decision of dividend payment on the growth of MFIs in Bamenda. The paper employed the use of secondary data which was accumulated through from 49 Micro Financial Institutions in Bamenda which was the population, the ordinarily least squares model was used. Descriptive statistics was utilized and analysis was done using the SPSS25 program application. Moreover, interpretations were made based on the results gotten. The study demonstrated that dividend rate and decision of dividend payment had a positive and significant effect on the growth of Micro Financial Institutions in Bamenda, the results also revealed that Access to capital markets has a negative insignificant effect on assets, therefore policies that enhance participation in capital markets will lead to a decrease in assets. The paper suggests that MFIs should set appropriate dividend rates so as to continue growing their institutions. MFIs that don't pay dividend but aim to grow ought to begin paying dividend to members.
Abstract: This paper titled the effects of dividend policy on the growth of micro financial institutions in Bamenda has the objectives to look at the effects of dividend rate on the growth of MFIs Bamenda and the effect of decision of dividend payment on the growth of MFIs in Bamenda. The paper employed the use of secondary data which was accumulated through...
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