VI.1- Conclusion
This research aims to find empirical evidence on a trade-off
between the two types of performance namely social and financial performance.
In other words, the research aims to verify or to analyse if the pursuit of
social objectives enables MFIs to eventually expand their financial
performance. At the same time, to analyse the development of Cameroon informal
sector in relation to the mission drift of MFIs. Indeed, the problem indicates:
Is there a trade-off between the social and financial performance? In other
words, does the pursuit of social objectives enable MFIs to eventually expand
their financial performance?
Based on the empirical evidence of the relationship between
social and financial performance of MFIs, and more specifically to a typology
of firms? performances, we have underlined some pertinent hypotheses to
analyse. Indeed, we have assumed the influence of social performance on
financial performance, the feedback relationship and the influence of social
and financial performance on the development of informal institutions. The
following lines give us more information on the hypotheses results.
Firstly, the research concentrates on the financial
performance of MFIs. The general assumption under this hypothesis (H1) is that:
social performance influences financial performance of MFIs.
? Positive link, H1a: «influence of social
performance on financial performance implies a good management of
MFI»;
This hypothesis has been tested in financial performance
regression. As a result, there found that the overall models used to estimate
the dependent variable ROA were statistically significant. In fact the observed
value of F test was greater in each model than the empirical value. As summary,
social performance variables influence the Return on Asset ceteris paribus.
Therefore, this can confirm the positive link of good management by the MFIs.
In the same idea, when ROE stands as a dependent variable in another financial
regression, we reach to the same conclusion (in sub models 2 and 3). For
example, under ANOVA table of ROE in the model 3,
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Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
this model is statistically significant. We found with the F
test that observed value 0.695 is greater than empirical value 0.409. We can
conclude that this model is useful to estimate ROE. Thus social performance
variables used in this model influence the dependent variable ROE, ceteris
paribus (assumption of good management practice). It is important to note that
the same conclusion can be drawn when Operational Self Sufficiency stands as a
dependent variable
? Negative link, H1b: «influence of social
performance on financial performance implies arbitration»
This hypothesis is so particular because the mission drift has
been found only in one case. In fact taken as a dependent variable in sub model
1 in the financial regression analysis, social performance variables have no
influence on the Return on Equity. This implies that the regression equation
was not useful to estimate the ROE, because the observed value of F test was
less than the empirical value.
Secondly the research focuses on hypothesis two (H2) which
assumes that: «financial performance influences social
performance»
? Positive link, H2a: «good financial
performance enables the firm to allocate some margin to social
issues»
This hypothesis has been tested in social performance
regression. In fact, under the model where Average Loans/GDP is considered as
an independent variable, they found that financial performance variables are
useful to estimate the AL/GDP. Therefore, we can observe that all the entire
sub models have a very high value of F test, and this is very significant.
Indeed the results show that there is a positive link between AL and financial
performance variables ceteris paribus. This implies the availability of fund by
the Microfinance Institutions.
? Negative link, H2b: «financially powerful
companies are the worse in terms of SP because of their leaders' greed, who do
not share the margin»
This hypothesis can be verified through the social performance
regression when the Commitment in Favour of Individual Related is considered as
an independent variable. In fact all the entire models used here enable to
prove that financial performance variables do not influence the CFIR and
justify the fact that financially powerful companies are the worse in terms of
SP because of their leaders? greed, who do not share the margin.
As we have mentioned earlier in our research another task was
to prove the relationship between the microfinances? performance and the
development of the informal sector in Cameroon. Thus we have stated two other
hypotheses: 113 and 114
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Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
? 113: «financial performance influences the
development of informal sector»
To test the above hypothesis, we have used the informal
sector regression. T test has shown in the case of Total Asset regression
coefficient that independent variables (financial performance variable)
influence the deposits made by the clients of small and medium size
enterprises, ceteris paribus. But other regression coefficients are not
significant because their T values are less than empirical value. Thus MFIs
must concentrate their effort to improve their total assets, which results in
the valorization of FD amount by clients.
? 114: «social performance influences the development
of informal sector»
The regression applied here was the social performance
regression. The Gross Loan was set as the dependent variable. In that case, we
have similar results as the above conclusion. Therefore, social performance
through the AL/GDP influences the Gross Loan and consequently the development
of informal sector.
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