Impact of Capital Structure on the Performance of Micro Finance Institutions: Evidence from Pakistan

Abstract

The purpose of the research is to examine the impact of capital structure on the performance of MFI’s in Pakistan. Panel data covering 5 years period 2010-2014 were taken into account within the extension of fixed and random effect techniques. Most of the microfinance institutions with more deposits to assets and higher gross loan portfolio are performing better for the performance but the more debt can reduce the performance according to this study. This is the first study which is showing the picture of only about Pakistan and before it no work has been done on Pakistan’s MFI’s performance.