Equity financing and debt-based financing: Evidence from Islamic microfinance institutions in Indonesia
This paper investigates the impact of Islamic microfinance on rural households' welfare in Indonesia. Using a survey questionnaire, this study explores two group of financing in Islamic microfinance, equity and debt-based financing. A two-year panel dataset and a double difference-in-difference approach are used to examine the impact of the two Islamic microfinance groups on rural household in Indonesia. The study also evaluates shari'a compliance based on the national shari'a board of Indonesia. The study results indicate that both financing groups exhibit a positive and significant impact on rural households' income, but equity financing performed better than debt-based financing. Moreover, the shari'a compliance evaluation indicates that clients received financing that is comparable with the national shari'a board of Indonesia.... [Show full abstract]
Keywordsequity financing; debt-based financing; difference-in-difference; shari'a compliance; Islamic microfinance; Indonesia; Finance
Fields of Research140210 International Economics and International Finance; 150203 Financial Institutions (incl. Banking); 150205 Investment and Risk Management
© 2017 Elsevier B.V. All rights reserved.
CitationFianto, B.A., Gan, C., Hu, B., & Roudaki, J. (2017). Equity financing and debt-based financing: Evidence from Islamic microfinance institutions in Indonesia. Pacific-Basin Finance Journal. doi:10.1016/j.pacfin.2017.09.010
Showing items related by title, author, creator and subject.
Resilience and finances on Aotearoa New Zealand farms: Evidence from a random survey on the sources and uses of debt Greig, Bruce J.; Nuthall, Peter L.; Old, Kevin (Wiley on behalf of the New Zealand Geographical Society, 2019-04-02)Debt and income are keystones to financial resilience on New Zealand farms. This article utilises a survey on finance to assess farm financial health using a new model of resilience. It shows the majority of farms are ...
Financial theory and the definition of the small business : the role of personal liability as a critical variable in the definition of small business from the perspective of financial management Newman, Derek L. (Lincoln University, 1996)The discipline of small business finance is characterised by regular reference to the difficulties perceived in applying theories of finance that were derived from and tested in a world of large businesses. Topics such as ...
Liang, Qing; Gan, Christopher; Li, Zhaohua (Elsevier, 2018-11-30)This study examines the financing cost enterprises confront when seeking backing from venture capitalists (VC) in different institutional settings related to proxy voting rights. Using a sociological perspective, we have ...