%0 Journal Article
	%A Patrick M. Stanton and  William R. McCumber
	%D 2020
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 159, 2020
	%T Cultural Effects on the Performance of Non- Profit and For-Profit Microfinance Institutions
	%U https://publications.waset.org/pdf/10011134
	%V 159
	%X Using a large dataset of more than 2,400 individual microfinance institutions (MFIs) from 120 countries from 1999 to 2016, this study finds that nearly half of the international MFIs operate as for-profit institutions. Formal institutions (business regulatory environment, property rights, social protection, and a developed financial sector) impact the likelihood of MFIs being for-profit across countries. Cultural differences across countries (power distance, individualism, masculinity, and indulgence) seem to be a factor in the legal status of the MFI (non-profit or for-profit). MFIs in countries with stronger formal institutions, a greater degree of power distance, and a higher degree of collectivism experience better financial and social performance.
	%P 207 - 214