Voluntary Disclosures of Indian Microfinance Institutions
Keywords: Voluntary Disclosure, Non- Banking Financial Companies- Micro financial Institutions, Data Envelopment Analysis, Panel regression, Efficiency estimation, India. The microfinance sector is growing at an astonishing rate in India. Reserve Bank of India, from time to time, comes up with a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2022-07-01
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| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | https://ro.uow.edu.au/aabfj/vol16/iss3/17/ |
| Summary: | Keywords: Voluntary Disclosure, Non- Banking Financial Companies- Micro financial Institutions, Data Envelopment Analysis, Panel regression, Efficiency estimation, India.
The microfinance sector is growing at an astonishing rate in India. Reserve Bank of India, from
time to time, comes up with a lot of directions to maintain transparency and governance in the
microfinance sector. The current study focuses on the voluntary disclosure (VD) of the NonBanking Financial Companies- Microfinance Institutions in India. The study constructs an
unweighted index to measure the VD scores of the firms. The study also estimates the technical
efficiency of the firms in meeting dual objectives of social and financial efficiency of the
microfinance institutions. The empirical testing derived the association of the VD score and
the efficiency from the data sourced from 2015 to 2019. The findings suggest a negative
association between VD and efficiency. The study's major contribution is the type of VD
disclosed by the firms. Finding also suggests that firms consider discretionary disclosure a
wasteful activity. The dual performance is low but shows a gradual increase. The study is
relevant for the policymakers and managers to check the disclosure strategy and the patterns of
these firms, which mainly depend on the donors for raising funds for their sustainability. |
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| ISSN: | 1834-2000 1834-2019 |