Analysis and modeling of social performance of panel data on Moroccan microfinance institu- tions

Abstract

In this study, the social performance of Moroccan Microfinance institutions (MFIs) is measured by the number of clients and the percentage of female clients using data from 10 Moroccan MFIs (available on the Mix platform) from 2003 to 2012. With a model and data analysis, our results show that the portfolio at risk (PAR30) does not impact social performance. Age has a positive impact on the social performance of these institutions. The results also demonstrate that the outreach of MFIs microfinance programs positively affects social performance. Furthermore, we find a significant impact of the share of equity in total assets, economic profitability, and the percentage of women among clients on the social performance of MFIs. This study shows that MFIs tend to give
more individual credit than group loans, and the percentage of female clients decreases over time.