Solvay Business School

Displaying 1-40 of 44 results

  • White Papers // Jul 2011

    What Financial Backers Expect From Business Plans: Effectual Versus Causal Logic

    For years, Business Planning (BP) has played a central role in the teaching and practice of new venture creation. However, existing research has provided the authors with mixed results about its usefulness. Part of the argument against BP is that it relies on top-down logic while emerging bottom-up logic may...

    Provided By Solvay Business School

  • White Papers // Jul 2011

    The Reverse Gender Gap In Ethnic Discrimination: Employer Priors Against Men And Women With Arabic Names

    The authors examine differences in the intensity of employer priors against men and women with Arabic names in Sweden by testing how much more work experience is needed to eliminate the disadvantage of having an Arabic name on job applications. Employers are first sent CVs of equal merits in a...

    Provided By Solvay Business School

  • White Papers // Jun 2011

    Microfinance Over-Indebtedness: Understanding Its Drivers And Challenging The Common Myths

    The microfinance industry has been celebrated both for its social impact on poverty alleviation and for its profitability. With issues of over-indebtedness emerging among microfinance customers, both achievements are at risk. This paper contributes to the industry's understanding of the definition and causes of over-indebtedness. It reveals why the 5...

    Provided By Solvay Business School

  • White Papers // May 2011

    Do Migrants' Deposits Reduce Microfinance Institutions' Liquidity Risk?

    This paper is devoted to the analysis of liquidity risk in microfinance. Using a re-sampling method, the authors estimate withdrawal rate distributions for migrants' and locals' deposits, using an original database of 7,828 deposit contracts issued between 2002 and 2008 by 12 village banks belonging to a major Malian rural...

    Provided By Solvay Business School

  • White Papers // May 2011

    Subjectivity In Credit Allocation To Micro-Entrepreneurs: Evidence From Brazil

    This paper estimates the impact of loan officers' subjectivity on microcredit granting by exploiting an exceptionally detailed database from a Brazilian microfinance institution. Loan officers collect field data, meet with applicants, and make recommendations to the credit committee that in turn has the final say on both loan approval and...

    Provided By Solvay Business School

  • White Papers // Apr 2011

    Subsidy Uncertainty And Microfinance Mission Drift

    This paper shines light on subsidy-dependent MicroFinance Institutions (MFIs). Firstly, the authors' model shows that subsidy uncertainty can have pervasive effects on MFIs' poverty-reduction mission. In particular, they argue that supply-driven uncertainty can lead to mission drift. MFIs maximize utility by serving the poor on the one hand, but must...

    Provided By Solvay Business School

  • White Papers // Mar 2011

    Is Combined Microfinance An Instrument To Enhance Sustainable Pro-Poor Public Policy Outcomes?

    Product diversification involving simultaneously microcredit, savings or insurance services - also called Combined MicroFinance (CMF)- can both leverage and challenge policy outcomes. This paper reviews two complementary questions in this regard: Which are the possible effects of CMF on public policy? And how can public policy influence CMF outcomes? A...

    Provided By Solvay Business School

  • White Papers // Mar 2011

    Do Microfinance Rating Assessments Make Sense? - An Analysis Of The Drivers Of The MFI Ratings

    Rating assessments of microfinance institutions are claimed to measure a combination of creditworthiness, trustworthiness and excellence in microfinance. Using a global dataset covering reports from 324 microfinance institutions, this paper suggests that these ratings are mainly driven by size, profitability, and risk. The ratings do not seem to capture the...

    Provided By Solvay Business School

  • White Papers // Mar 2011

    Understanding The Dynamics Of Product Diversification On Microfinance Performance Outcomes: A Case Study In Barbados

    This paper aims at gaining deeper understanding of the possible effects of Combined MicroFinance (CMF) on social and economic performance outcomes. By means of a case-study on the City Of Bridgetown (COB), one of the leading credit unions in Barbados, it explores the possible limits, challenges and economies of scope...

    Provided By Solvay Business School

  • White Papers // Feb 2011

    Credit To Women Entrepreneurs: The Curse Of The Trustworthier Sex

    Women entrepreneurs are known not only to reimburse loans swifter than men, but also to receive smaller loans. However, on average women have smaller-scope business projects and are poorer than men. A deeper investigation is thus required in order to assess the existence of gender discrimination in small-business lending. This...

    Provided By Solvay Business School

  • White Papers // Dec 2010

    Do Multiple Financial Services Enhance The Poverty Outreach Of Microfinance Institutions?

    Documented deficiencies in traditional social transfer mechanisms have led to the emergence of alternative methods for reducing poverty. In many countries, MicroFinance Institutions (MFIs) have become popular instruments for redistributive pro-poor policies. While microcredit programmes have undoubtedly improved the lives of millions of poor households, they are also criticised for...

    Provided By Solvay Business School

  • White Papers // Dec 2010

    Can Combining Credit With Insurance Or Savings Enhance The Sustainability Of Microfinance Institutions?

    Worldwide, microcredit organizations are gradually transforming to multi-servicing organizations offering additional financial services. This paper examines whether combining microcredit with insurance and/or savings enhances their economic performance by increasing their efficiency, productivity, sustainability or portfolio quality indicators. Using cross-sectional data from 250 MicroFinance Institutions (MFIs) from Latin America and the...

    Provided By Solvay Business School

  • White Papers // Nov 2010

    Microfinance And Women's Empowerment: Do Relationships Between Women Matter? Lessons From Rural Southern India

    In the microfinance industry the idea of "Empowerment" is often valued as a means to encourage female emancipation from male domination. This paper's main purpose is to draw on women's testimonies and narratives to highlight the fundamental importance within these processes of women's relationships with one another, both in terms...

    Provided By Solvay Business School

  • White Papers // Nov 2010

    Financial Crises In Efficient Markets: How Fundamentalists Fuel Volatility

    When a financial crisis breaks out, speculators typically get the blame whereas fundamentalists are presented as the safeguard against excessive volatility. This paper proposes an asset pricing model where two types of rational traders coexist: short-term speculators and long-term fundamentalists, both sharing the same information set. In this framework, excess...

    Provided By Solvay Business School

  • White Papers // Nov 2010

    What Explains Microfinance Distribution Surplus? A Stakeholder-Oriented Approach

    What are the drivers of productivity surplus distribution to microfinance stakeholders? This paper shows that the size of the institution is the main indicator that can explain the gain in productivity surplus but also the surplus given to clients (decrease of interest rates) and staff. Moreover, cooperatives keep a significantly...

    Provided By Solvay Business School

  • White Papers // Oct 2010

    A Decision Support System For Financial And Social Investment

    This paper proposes a decision-making model that assesses the different aspects associated to Social Venture Capital (SVC) investment decisions. SVC companies buy shares of investee companies, valued according to financial and social aspects. The proposed model includes three main factors: the previous experience with the company (the past); its financial...

    Provided By Solvay Business School

  • White Papers // Sep 2010

    Microfinance And Gender: Is There A Glass Ceiling In Loan Size?

    Microfinance institutions serve a majority of female borrowers. But do men and women benefit from same credit conditions? This paper investigates this issue by presenting an original model and testing its predictions on an exceptional database including 34,000 loan applications from a Brazilian microfinance institution over an eleven-year period. The...

    Provided By Solvay Business School

  • White Papers // Sep 2010

    Diversification Of Microfinance Institutions: Determinants For Entering The Remittances Market

    As financial intermediaries, MicroFinance Institutions (MFIs) contribute to integrate remittances into the formal financial system. Using a database including 225 MFIs from Latin America and the Caribbean, this paper investigates the institutional factors that influence the MFI decision-making process of entering the remittances market. Operational, managerial, and financial performances are...

    Provided By Solvay Business School

  • White Papers // Aug 2010

    Microfinance Institutions Performance. What Matters About The Interaction Of Location And Legal Status?

    The question this paper seeks to answer is whether the relationship between legal status and performance is influenced by the geographical area to which the MFI belongs, as postulated in some work. To this end, the authors study a sample of 202 MFIs in the period 2001 to 2006. The...

    Provided By Solvay Business School

  • White Papers // Jul 2010

    Productivity Surplus Distribution In Microfinance: Does Ownership Matter?

    How do MicroFinance Institutions (MFIs) allocate their productivity surplus to stakeholders? This paper shows that this allocation process varies according to the MFI ownership structure. Non-profit organisations and shareholders-held MFIs exhibit a tendency to largely keep their surplus within the MFI as a self-financing margin (reserve accounts, future investments, and...

    Provided By Solvay Business School

  • White Papers // Mar 2010

    A Social Performance Analysis Of Italian Microfinance

    This paper aims to analyze Italian MFIs social performance according to the core set of common indicators and framework developed by the Social Performance Task Force using data collected by Fondazione Giordano Dell'Amore and Fondazione Risorsa Donna in 2008 for the European Microfinance Network (EMN) Survey 2006-2007. Key features and...

    Provided By Solvay Business School

  • White Papers // Mar 2010

    Where Do Creditor Rights Matter? Creditor Rights, Political Constraints, And Cross- Border M&A Activity

    In this paper, the authors evaluate the impact of creditor rights and political risk on both the number and the value of cross-border M&A flows in a gravity model using a negative binomial model and Heckman's two-stage selection model, respectively. Their results confirm that creditor-friendly rules and political risk decrease...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Perspectives And A Quantitative Model For Structured Microfinance

    The authors study the perspectives and develop a quantitative model for structured microfinance instruments, which have suffered as a result of the financial crisis of 2008/2009. A survey addressed to relevant world-wide experts on microfinance shows that structured instruments are still regarded as an important means for refinancing microfinance institutions...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Theory Of Social Returns In Portfolio Choice With Application To Microfinance

    The authors complement standard portfolio theory ? la Markowitz by adding a social dimension. They distinguish between two main setups, taking social returns as stochastic in the first, but as deterministic in the second. Two main features need to be introduced: every asset must be assigned a (distribution of) social...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Art Collections As A Strategy Tool: A Typology Based On The Belgian Financial Sector

    Reasons why organizations sponsor artistic and cultural events have attracted a lot of scholarly attention. However, understanding why organizations create and develop their own collections has remained largely under investigated. This is especially striking in the financial sector where companies are well-known for owning substantial art collections. This paper has...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Issues In Subsidies And Sustainability Of Microfinance: An Empirical Investigation

    The social nature of MicroFinance Institutions (MFIs) is mainly financed by subsidies received from the donors. This paper investigates the relationship between the sustainability and the efficiency of microfinance. Using Yaron's Subsidy Dependence Index (SDI) as a measure of sustainability, a panel data set has been generated from the audit...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Institutional Analysis To Explain The Success Of Moroccan Microfinance Institutions

    This paper looks at whether Morocco meets the usual criteria of a country where MFIs can succeed and what distinguishes Morocco from its North African neighbors (Algeria, Tunisia, Libya and Egypt) where a priori the culture is similar even though institutions may be different. The paper uses the similarities and...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Efficiency And Productivity Of Microfinance: Incorporating The Role Of Subsidies

    The social nature of MFIs is mainly financed by subsidies from donors. Therefore, the role of subsidies cannot be under estimated in MFIs efficiency and productivity analysis. This paper is a first attempt to measure the financial efficiency and productivity of MicroFinance Institutions (MFIs) worldwide taking into account the subsidies...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Performance Of Microfinance: The Role Of Subsidies

    Unlike conventional finance institutions, MicroFinance Institutions (MFIs) strive for financial sustainability but also empowerment of the poor. This social nature of MFIs is mainly financed by subsidies from donors. This paper measures the extent of subsidization in MF sector for the years 2005 and 2006 using Yaron's Subsidy Dependence Index...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Discrimination By Microcredit Officers: Theory And Evidence On Disability In Uganda

    This paper studies the relationship between a MicroFinance Institution (MFI) and its credit officers when the latter are biased against a subgroup of the clientele. Using survey data from Uganda, the authors provide evidence that credit officers are more biased against disabled borrowers than other employees. In line with the...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Microfinance And Development Finance In India: Research Implications

    This paper appraises options for research relating to microfinance in India, doing so in the broad context of rival macro pressures to accelerate economic growth, maintain political order, reduce poverty and adapt to climate change. This paper first set out a general well-being regime framework that can be used for...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Nice But Cautious Guys: The Cost Of Responsible Investing In The Bond Markets

    The aim of this paper is to measure the cost of investing responsibly for different risk aversion levels by taking the example of green sovereign bond portfolios. The authors show that for developed markets, the cost of being a nice guy is lower if you are cautious (i.e. a higher...

    Provided By Solvay Business School

  • White Papers // Jan 2010

    MicroFinance Institutions (MFIs) On The Remittances Market: Do Money Transfer Activities Generate Deposits?

    MicroFinance Institutions (MFIs) are expected to succeed in transforming migrants' remittances into deposits. Based on an original database including 114 MFIs from Africa, South Asia, Latin America and the Caribbean, and East Asia and the Pacific, this paper empirically examines the occurrence of this expected success. It tests whether MFIs...

    Provided By Solvay Business School

  • White Papers // Jan 2010

    Maturity Mismatch And Governance Of Microfinance Cooperatives: Lessons From History

    This paper shows how today's West African microfinance cooperatives could learn from the experience of 19th century German Financial Cooperatives (FCs) to address their members' need for long-term loans, especially in rural areas. FCs have short-term internal resources, consisting mainly of members' savings. Thus, providing long-term loans requires dealing with...

    Provided By Solvay Business School

  • White Papers // Nov 2009

    How Did Financial-Crisis-Based Criticisms Of Market Efficiency Get It So Wrong?

    In the aftermath of the financial crisis, market efficiency is being heavily criticized. However, the volatility-based criticisms rely on false grounds as efficiency and speculative bubbles are compatible. Indeed, the efficient market model is about rationality and information, not about stability. This model admits multiple solutions, as do most rational...

    Provided By Solvay Business School

  • White Papers // Nov 2009

    Sovereign Bonds And Socially Responsible Investment

    This paper investigates how the mean-variance efficient frontier defined by sovereign bonds of twenty developed countries is affected by the consideration of socially responsible indicators for countries in the investment decision-making. For a global rating of socially responsible performances, the authors show that it is possible to build portfolios with...

    Provided By Solvay Business School

  • White Papers // Oct 2009

    Microfinance For Self-Employment Activities In The European Urban Areas: Contrasting Cr?dal In Belgium And Adie In France

    Poverty is multidimensional. In its starkest form, the United Nations Development Annual Reports proxy poverty as combined low levels of income, health, and education. Microfinance, on the other hand, addresses directly the income dimension of poverty, and indirectly health and education. Specifically, microfinance is generally perceived as a tool for...

    Provided By Solvay Business School

  • White Papers // Oct 2009

    Economic Crisis And Morale

    The functioning of welfare states and tax systems is fostered by social norms to obey the rules of the system. Morale can change and react to new incentives. In particular, a deep economic crisis with increasing unemployment and reduced prospects for market income may have a norm eroding effect. This...

    Provided By Solvay Business School

  • White Papers // Sep 2009

    Decision Time In Belgium: An Experiment As To How Business Angels Evaluate Investment Opportunities

    To what extent do business angels really understand their own decision process? This paper is the first in business angel research literature to use conjoint analysis to capture decision makers' actual decision policies and to compare these results with their stated decision policies. Although more than twenty papers discussing the...

    Provided By Solvay Business School

  • White Papers // Sep 2009

    Microfinance And Financial Sector Development

    This paper analyzes the relationship between performance of MicroFinance Institutions (MFIs) and the development of the formal financial sector of the country in which the MFI is active. The authors find that MFIs reach more clients and are more profitable where access to the formal financial system is low. This...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Art Collections As A Strategy Tool: A Typology Based On The Belgian Financial Sector

    Reasons why organizations sponsor artistic and cultural events have attracted a lot of scholarly attention. However, understanding why organizations create and develop their own collections has remained largely under investigated. This is especially striking in the financial sector where companies are well-known for owning substantial art collections. This paper has...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Issues In Subsidies And Sustainability Of Microfinance: An Empirical Investigation

    The social nature of MicroFinance Institutions (MFIs) is mainly financed by subsidies received from the donors. This paper investigates the relationship between the sustainability and the efficiency of microfinance. Using Yaron's Subsidy Dependence Index (SDI) as a measure of sustainability, a panel data set has been generated from the audit...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Efficiency And Productivity Of Microfinance: Incorporating The Role Of Subsidies

    The social nature of MFIs is mainly financed by subsidies from donors. Therefore, the role of subsidies cannot be under estimated in MFIs efficiency and productivity analysis. This paper is a first attempt to measure the financial efficiency and productivity of MicroFinance Institutions (MFIs) worldwide taking into account the subsidies...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Performance Of Microfinance: The Role Of Subsidies

    Unlike conventional finance institutions, MicroFinance Institutions (MFIs) strive for financial sustainability but also empowerment of the poor. This social nature of MFIs is mainly financed by subsidies from donors. This paper measures the extent of subsidization in MF sector for the years 2005 and 2006 using Yaron's Subsidy Dependence Index...

    Provided By Solvay Business School

  • White Papers // Jan 2010

    Maturity Mismatch And Governance Of Microfinance Cooperatives: Lessons From History

    This paper shows how today's West African microfinance cooperatives could learn from the experience of 19th century German Financial Cooperatives (FCs) to address their members' need for long-term loans, especially in rural areas. FCs have short-term internal resources, consisting mainly of members' savings. Thus, providing long-term loans requires dealing with...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Institutional Analysis To Explain The Success Of Moroccan Microfinance Institutions

    This paper looks at whether Morocco meets the usual criteria of a country where MFIs can succeed and what distinguishes Morocco from its North African neighbors (Algeria, Tunisia, Libya and Egypt) where a priori the culture is similar even though institutions may be different. The paper uses the similarities and...

    Provided By Solvay Business School

  • White Papers // Nov 2009

    How Did Financial-Crisis-Based Criticisms Of Market Efficiency Get It So Wrong?

    In the aftermath of the financial crisis, market efficiency is being heavily criticized. However, the volatility-based criticisms rely on false grounds as efficiency and speculative bubbles are compatible. Indeed, the efficient market model is about rationality and information, not about stability. This model admits multiple solutions, as do most rational...

    Provided By Solvay Business School

  • White Papers // Oct 2009

    Microfinance For Self-Employment Activities In The European Urban Areas: Contrasting Cr?dal In Belgium And Adie In France

    Poverty is multidimensional. In its starkest form, the United Nations Development Annual Reports proxy poverty as combined low levels of income, health, and education. Microfinance, on the other hand, addresses directly the income dimension of poverty, and indirectly health and education. Specifically, microfinance is generally perceived as a tool for...

    Provided By Solvay Business School

  • White Papers // Sep 2009

    Microfinance And Financial Sector Development

    This paper analyzes the relationship between performance of MicroFinance Institutions (MFIs) and the development of the formal financial sector of the country in which the MFI is active. The authors find that MFIs reach more clients and are more profitable where access to the formal financial system is low. This...

    Provided By Solvay Business School

  • White Papers // Jan 2010

    MicroFinance Institutions (MFIs) On The Remittances Market: Do Money Transfer Activities Generate Deposits?

    MicroFinance Institutions (MFIs) are expected to succeed in transforming migrants' remittances into deposits. Based on an original database including 114 MFIs from Africa, South Asia, Latin America and the Caribbean, and East Asia and the Pacific, this paper empirically examines the occurrence of this expected success. It tests whether MFIs...

    Provided By Solvay Business School

  • White Papers // Mar 2011

    Do Microfinance Rating Assessments Make Sense? - An Analysis Of The Drivers Of The MFI Ratings

    Rating assessments of microfinance institutions are claimed to measure a combination of creditworthiness, trustworthiness and excellence in microfinance. Using a global dataset covering reports from 324 microfinance institutions, this paper suggests that these ratings are mainly driven by size, profitability, and risk. The ratings do not seem to capture the...

    Provided By Solvay Business School

  • White Papers // Mar 2011

    Is Combined Microfinance An Instrument To Enhance Sustainable Pro-Poor Public Policy Outcomes?

    Product diversification involving simultaneously microcredit, savings or insurance services - also called Combined MicroFinance (CMF)- can both leverage and challenge policy outcomes. This paper reviews two complementary questions in this regard: Which are the possible effects of CMF on public policy? And how can public policy influence CMF outcomes? A...

    Provided By Solvay Business School

  • White Papers // Apr 2011

    Subsidy Uncertainty And Microfinance Mission Drift

    This paper shines light on subsidy-dependent MicroFinance Institutions (MFIs). Firstly, the authors' model shows that subsidy uncertainty can have pervasive effects on MFIs' poverty-reduction mission. In particular, they argue that supply-driven uncertainty can lead to mission drift. MFIs maximize utility by serving the poor on the one hand, but must...

    Provided By Solvay Business School

  • White Papers // May 2011

    Do Migrants' Deposits Reduce Microfinance Institutions' Liquidity Risk?

    This paper is devoted to the analysis of liquidity risk in microfinance. Using a re-sampling method, the authors estimate withdrawal rate distributions for migrants' and locals' deposits, using an original database of 7,828 deposit contracts issued between 2002 and 2008 by 12 village banks belonging to a major Malian rural...

    Provided By Solvay Business School

  • White Papers // Jul 2011

    What Financial Backers Expect From Business Plans: Effectual Versus Causal Logic

    For years, Business Planning (BP) has played a central role in the teaching and practice of new venture creation. However, existing research has provided the authors with mixed results about its usefulness. Part of the argument against BP is that it relies on top-down logic while emerging bottom-up logic may...

    Provided By Solvay Business School

  • White Papers // Dec 2010

    Do Multiple Financial Services Enhance The Poverty Outreach Of Microfinance Institutions?

    Documented deficiencies in traditional social transfer mechanisms have led to the emergence of alternative methods for reducing poverty. In many countries, MicroFinance Institutions (MFIs) have become popular instruments for redistributive pro-poor policies. While microcredit programmes have undoubtedly improved the lives of millions of poor households, they are also criticised for...

    Provided By Solvay Business School

  • White Papers // Dec 2010

    Can Combining Credit With Insurance Or Savings Enhance The Sustainability Of Microfinance Institutions?

    Worldwide, microcredit organizations are gradually transforming to multi-servicing organizations offering additional financial services. This paper examines whether combining microcredit with insurance and/or savings enhances their economic performance by increasing their efficiency, productivity, sustainability or portfolio quality indicators. Using cross-sectional data from 250 MicroFinance Institutions (MFIs) from Latin America and the...

    Provided By Solvay Business School

  • White Papers // Nov 2010

    Microfinance And Women's Empowerment: Do Relationships Between Women Matter? Lessons From Rural Southern India

    In the microfinance industry the idea of "Empowerment" is often valued as a means to encourage female emancipation from male domination. This paper's main purpose is to draw on women's testimonies and narratives to highlight the fundamental importance within these processes of women's relationships with one another, both in terms...

    Provided By Solvay Business School

  • White Papers // Nov 2010

    Financial Crises In Efficient Markets: How Fundamentalists Fuel Volatility

    When a financial crisis breaks out, speculators typically get the blame whereas fundamentalists are presented as the safeguard against excessive volatility. This paper proposes an asset pricing model where two types of rational traders coexist: short-term speculators and long-term fundamentalists, both sharing the same information set. In this framework, excess...

    Provided By Solvay Business School

  • White Papers // Oct 2010

    A Decision Support System For Financial And Social Investment

    This paper proposes a decision-making model that assesses the different aspects associated to Social Venture Capital (SVC) investment decisions. SVC companies buy shares of investee companies, valued according to financial and social aspects. The proposed model includes three main factors: the previous experience with the company (the past); its financial...

    Provided By Solvay Business School

  • White Papers // Jun 2011

    Microfinance Over-Indebtedness: Understanding Its Drivers And Challenging The Common Myths

    The microfinance industry has been celebrated both for its social impact on poverty alleviation and for its profitability. With issues of over-indebtedness emerging among microfinance customers, both achievements are at risk. This paper contributes to the industry's understanding of the definition and causes of over-indebtedness. It reveals why the 5...

    Provided By Solvay Business School

  • White Papers // Sep 2010

    Microfinance And Gender: Is There A Glass Ceiling In Loan Size?

    Microfinance institutions serve a majority of female borrowers. But do men and women benefit from same credit conditions? This paper investigates this issue by presenting an original model and testing its predictions on an exceptional database including 34,000 loan applications from a Brazilian microfinance institution over an eleven-year period. The...

    Provided By Solvay Business School

  • White Papers // Nov 2010

    What Explains Microfinance Distribution Surplus? A Stakeholder-Oriented Approach

    What are the drivers of productivity surplus distribution to microfinance stakeholders? This paper shows that the size of the institution is the main indicator that can explain the gain in productivity surplus but also the surplus given to clients (decrease of interest rates) and staff. Moreover, cooperatives keep a significantly...

    Provided By Solvay Business School

  • White Papers // Sep 2010

    Diversification Of Microfinance Institutions: Determinants For Entering The Remittances Market

    As financial intermediaries, MicroFinance Institutions (MFIs) contribute to integrate remittances into the formal financial system. Using a database including 225 MFIs from Latin America and the Caribbean, this paper investigates the institutional factors that influence the MFI decision-making process of entering the remittances market. Operational, managerial, and financial performances are...

    Provided By Solvay Business School

  • White Papers // Aug 2010

    Microfinance Institutions Performance. What Matters About The Interaction Of Location And Legal Status?

    The question this paper seeks to answer is whether the relationship between legal status and performance is influenced by the geographical area to which the MFI belongs, as postulated in some work. To this end, the authors study a sample of 202 MFIs in the period 2001 to 2006. The...

    Provided By Solvay Business School

  • White Papers // Jul 2010

    Productivity Surplus Distribution In Microfinance: Does Ownership Matter?

    How do MicroFinance Institutions (MFIs) allocate their productivity surplus to stakeholders? This paper shows that this allocation process varies according to the MFI ownership structure. Non-profit organisations and shareholders-held MFIs exhibit a tendency to largely keep their surplus within the MFI as a self-financing margin (reserve accounts, future investments, and...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Microfinance And Development Finance In India: Research Implications

    This paper appraises options for research relating to microfinance in India, doing so in the broad context of rival macro pressures to accelerate economic growth, maintain political order, reduce poverty and adapt to climate change. This paper first set out a general well-being regime framework that can be used for...

    Provided By Solvay Business School

  • White Papers // Mar 2010

    A Social Performance Analysis Of Italian Microfinance

    This paper aims to analyze Italian MFIs social performance according to the core set of common indicators and framework developed by the Social Performance Task Force using data collected by Fondazione Giordano Dell'Amore and Fondazione Risorsa Donna in 2008 for the European Microfinance Network (EMN) Survey 2006-2007. Key features and...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Perspectives And A Quantitative Model For Structured Microfinance

    The authors study the perspectives and develop a quantitative model for structured microfinance instruments, which have suffered as a result of the financial crisis of 2008/2009. A survey addressed to relevant world-wide experts on microfinance shows that structured instruments are still regarded as an important means for refinancing microfinance institutions...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Theory Of Social Returns In Portfolio Choice With Application To Microfinance

    The authors complement standard portfolio theory ? la Markowitz by adding a social dimension. They distinguish between two main setups, taking social returns as stochastic in the first, but as deterministic in the second. Two main features need to be introduced: every asset must be assigned a (distribution of) social...

    Provided By Solvay Business School

  • White Papers // Apr 2009

    Discrimination In Microfinance: The Role Of Credit Officers

    This paper studies how high-powered incentives may affect credit officers' discriminatory practices in microfinance institutions. Using an agency model applied to a nonprofit MFI, the authors argue that incentive contracts may help align the officer's behavior with the MFI's mission. However, since incentives are costly, and the MFI's budget is...

    Provided By Solvay Business School

  • White Papers // Oct 2008

    What Macro Factors Make Microfinance Institutions Reach Out?

    This paper identifies factors that explain why microfinance institutions are reaching more clients in some countries than in others. To that end, the paper applies a cross-country analysis on a unique dataset covering 115 countries. Results indicate that the microfinance sector is more present in the richer countries of the...

    Provided By Solvay Business School

  • White Papers // May 2011

    Subjectivity In Credit Allocation To Micro-Entrepreneurs: Evidence From Brazil

    This paper estimates the impact of loan officers' subjectivity on microcredit granting by exploiting an exceptionally detailed database from a Brazilian microfinance institution. Loan officers collect field data, meet with applicants, and make recommendations to the credit committee that in turn has the final say on both loan approval and...

    Provided By Solvay Business School

  • White Papers // Jul 2011

    The Reverse Gender Gap In Ethnic Discrimination: Employer Priors Against Men And Women With Arabic Names

    The authors examine differences in the intensity of employer priors against men and women with Arabic names in Sweden by testing how much more work experience is needed to eliminate the disadvantage of having an Arabic name on job applications. Employers are first sent CVs of equal merits in a...

    Provided By Solvay Business School

  • White Papers // Mar 2010

    Where Do Creditor Rights Matter? Creditor Rights, Political Constraints, And Cross- Border M&A Activity

    In this paper, the authors evaluate the impact of creditor rights and political risk on both the number and the value of cross-border M&A flows in a gravity model using a negative binomial model and Heckman's two-stage selection model, respectively. Their results confirm that creditor-friendly rules and political risk decrease...

    Provided By Solvay Business School

  • White Papers // Feb 2011

    Credit To Women Entrepreneurs: The Curse Of The Trustworthier Sex

    Women entrepreneurs are known not only to reimburse loans swifter than men, but also to receive smaller loans. However, on average women have smaller-scope business projects and are poorer than men. A deeper investigation is thus required in order to assess the existence of gender discrimination in small-business lending. This...

    Provided By Solvay Business School

  • White Papers // Feb 2010

    Discrimination By Microcredit Officers: Theory And Evidence On Disability In Uganda

    This paper studies the relationship between a MicroFinance Institution (MFI) and its credit officers when the latter are biased against a subgroup of the clientele. Using survey data from Uganda, the authors provide evidence that credit officers are more biased against disabled borrowers than other employees. In line with the...

    Provided By Solvay Business School

  • White Papers // Apr 2009

    Credit Risk Analysis in Microcredit: How Does Gender Matter?

    This paper is the first to analyze the credit risk of a microfinance institution based on the loan portfolio of a leading Maghrebian microfinance institution, both in terms of number of clients served and of portfolio size. This allows the authors to work with a proprietary data set of 1,144,770...

    Provided By Solvay Business School

  • White Papers // Oct 2009

    Economic Crisis And Morale

    The functioning of welfare states and tax systems is fostered by social norms to obey the rules of the system. Morale can change and react to new incentives. In particular, a deep economic crisis with increasing unemployment and reduced prospects for market income may have a norm eroding effect. This...

    Provided By Solvay Business School

  • White Papers // Sep 2009

    Decision Time In Belgium: An Experiment As To How Business Angels Evaluate Investment Opportunities

    To what extent do business angels really understand their own decision process? This paper is the first in business angel research literature to use conjoint analysis to capture decision makers' actual decision policies and to compare these results with their stated decision policies. Although more than twenty papers discussing the...

    Provided By Solvay Business School