Title: Poverty reduction and donor funds: comparative appraisal of MFIs

Authors: Kishor Chandra Meher; Henok Yeshaw Getaneh

Addresses: Department of Accounting and Finance, The University of Fiji, Fiji ' Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Ethiopia

Abstract: The study investigates the critical appraisal of poverty reduction and donor funds for mature, middle-aged, and young MFIs. The research adopts a quantitative approach with balanced panel data of 29 Ethiopian MFIs for ten years from 2010 to 2019. The Hausman test was applied in the OLS regression model to analyse the relationship between poverty reduction indicators and donor funds. The findings reveal that the young MFIs top the list where poverty reduction indicators influence donor funds. Mature MFIs top the list in terms of willingness to pay the loan. Young MFIs have clients making maximum savings contributing to the donor funds. The mature MFIs contribute towards increasing the donor funds in terms of increasing portfolio size. The study concludes that young MFIs top the list of maximising donor funds while achieving poverty reduction goals, followed by middle-aged and mature MFIs.

Keywords: donor funds; poverty reduction; savings habit; portfolio size; client's willingness to pay.

DOI: 10.1504/AAJFA.2024.142114

Afro-Asian Journal of Finance and Accounting, 2024 Vol.14 No.6, pp.822 - 836

Received: 21 Oct 2021
Received in revised form: 23 Sep 2022
Accepted: 05 Oct 2022
Published online: 08 Oct 2024 *

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