Publication Type
Working Paper
Version
publishedVersion
Publication Date
10-2014
Abstract
We examine how different types of country-level globalization and the industry structure of microfinance institutions (MFIs) affect organization-level microcredit interest rates which crucially affect the poor's entrepreneurial opportunities. We develop an opportunity structure perspective that argues that MFI interest rates can be reduced by egalitarian-based social globalization but increased by neoliberal-based economic globalization. Moreover, stronger presence of nonprofit organizations in the microfinance industry lowers interest rates. Furthermore, these three forces can moderate the relationship between MFIs' outreach to the poor and average interest rate. Analyses of 2,559 MFI observations across 74 countries from 2002 - 2012 largely support our hypotheses.
Keywords
entrepreneurship, microfinance, economic globalization, social globalization, nonprofit organizations
Discipline
Finance | Finance and Financial Management
Research Areas
Finance
First Page
1
Last Page
42
Identifier
10.2139/ssrn.2512211
Publisher
Harvard Business School Organizational Behavior Unit Working Paper No. 15-029
City or Country
Boston, MA
Citation
LIANG, Hao; MARQUIS, Chris; and SUN, Sunny Li.
Finance and social responsibility in the informal economy: Institutional voids, globalization and microfinance institutions. (2014). 1-42.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5408
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.2512211
Comments
Revised & Resubmitted at Journal of Business Venturing