Research Article
The Social and Financial Performance of Microfinance Institutions in the Middle East and North Africa Region: Do Islamic Institutions Outperform Conventional Institutions?
I. Berguiga,
Y.Ben Said,
P. Adair,
I. Berguiga
Higher Institute of Business Studies, University of Sousse, Sousse, Tunisia
Search for more papers by this authorY.Ben Said
Higher Institute of Corporate Affairs, University of Sfax, Sfax, Tunisia
Search for more papers by this authorCorresponding Author
P. Adair
ERUDITE, University Paris-Est Créteil (UPEC), Creteil, France
Correspondence to: Philippe Adair, ERUDITE, University Paris-Est Créteil (UPEC), 61 avenue du General de Gaulle, Creteil 94010, France.
E-mail: adair@u-pec.fr
Search for more papers by this authorI. Berguiga,
Y.Ben Said,
P. Adair,
I. Berguiga
Higher Institute of Business Studies, University of Sousse, Sousse, Tunisia
Search for more papers by this authorY.Ben Said
Higher Institute of Corporate Affairs, University of Sfax, Sfax, Tunisia
Search for more papers by this authorCorresponding Author
P. Adair
ERUDITE, University Paris-Est Créteil (UPEC), Creteil, France
Correspondence to: Philippe Adair, ERUDITE, University Paris-Est Créteil (UPEC), 61 avenue du General de Gaulle, Creteil 94010, France.
E-mail: adair@u-pec.fr
Search for more papers by this authorAbstract
The performance of microfinance institutions (MFIs) is analysed over 2004–2015 on a sample of 67 MFIs in the Middle East and North Africa regions. It includes a subsample of 18 Islamic MFIs (IMFIs), whereof Solebusiness grant exclusively Islamic financial services, and Window provide both Islamic and conventional services. A model of simultaneous equations with interacting variables tests seven hypotheses addressing financial performance, social performance and the social and financial performance relationship. Conventional MFIs experience higher financial performance than IMFIs, and Window experience higher financial performance than Solebusiness. IMFIs do not experience higher social performance than conventional MFIs; whether conventional or Islamic, MFIs face a financial vs. social performance trade-off. © 2020 John Wiley & Sons, Ltd.
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