Impact of Capital Structure on the Performance of Micro Finance Institutions: Evidence from Pakistan
- Resource Type
- Authors
- Komal Saeed; Areeba Suleman; Ijaz Hussain Bokhari
- Source
- Journal of Research in Administrative Sciences. 9:26-31
- Subject
- Microfinance
Capital structure
media_common.quotation_subject
Loan portfolio
Financial system
Random effects model
law.invention
Micro finance
Work (electrical)
law
Debt
Business
Panel data
media_common
- Language
- ISSN
- 2664-2433
The purpose of the research is to examine the impact of capital structure on the performance of MFI’s in Pakistan. Panel data covering 5 years period 2010-2014 were taken into account within the extension of fixed and random effect techniques. Most of the microfinance institutions with more deposits to assets and higher gross loan portfolio are performing better for the performance but the more debt can reduce the performance according to this study. This is the first study which is showing the picture of only about Pakistan and before it no work has been done on Pakistan’s MFI’s performance.