Establishing microfinance efficiency and its determinants through data envelopment analysis and Tobit regression: Evidence from select Philippine microfinance institutions

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Junette A. Perez

Defense Panel Chair

Manrico T. Masagca

Defense Panel Member

Camille Concepcion
John Paolo Rivera

Abstract/Summary

The purpose of this study is to analyze the relative technical efficiency of chosen microfinance institutions (MFIs) in the Philippines with the use of data envelopment analysis (DEA) to calculate the efficiency scores, and to determine the factors that affect the differences in efficiency with the use of Tobit regression. DEA found a large portion of the sample MFIs to be efficient while the Tobit regression showed that the factors influencing MFI technical efficiency are: average loan balance per borrower, age of the institution, and ratio of gross loan portfolio to total assets. The results lead to the belief that most of the institutions included in the sample opt for sustainability (represented by average loan size) as a measure of efficiency rather than outreach (represented by number of borrowers).

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21634

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

52, [12] leaves : illustrations (some color)

Keywords

Microfinance--Philippines; Financial institutions--Philippines

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