Université libre de Bruxelles
Solvay Brussels School of Economics and Management
Dissertation presented in order to obtain the degree of PhD in Economics
and Management sciences.
Patrick Reichert
Thesis carried out under the direction of Prof. Ariane Szafarz and Prof. Marek Hudon
Jury :
Prof. Gregor Dorfleitner, Universität Regensburg
Prof. Begoña Gutiérrez-Nieto, Universidad de Zaragoza
Prof. Marek Hudon, Université libre de Bruxelles
Prof. Marc Labie, Université de Mons & Université libre de Bruxelles
Prof. Ariane Szafarz, Université libre de Bruxelles
Academic year 2017-2018
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TABLE OF CONTENTS
Table of Contents ... i
Acknowledgments ... iii
Introduction ... 1
1. A Conceptualization of Social Finance ... 2
2. Applicability to Microfinance ... 6
2.1. Commercialization ... 7
2.2. Financial Mechanisms and Investor Expectations ... 10
2.3. Conceptualizing Profits ... 13
3. Research Questions and General Plan of the Dissertation ... 15
Chapter 1:
A meta-analysis examining the nature of trade-offs in
microfinance ... 17
Abstract ... 17
Keywords: microfinance, financial performance, social performance, meta-analysis ... 17
JEL codes: C12, G21, L25, L31 ... 17
Acknowledgements: ... 17
1. Introduction ... 18
2. Theoretical Framework ... 19
2.1. Microfinance Performance Indicators ... 20
2.2. Study Artefacts and Additional Theoretical Considerations ... 23
3. Methods ... 25
3.1. Search Strategy ... 25
3.2. Inclusion/Exclusion Criteria ... 26
3.3. Characteristics of Primary Studies ... 27
3.4. Measures ... 28 4. Results ... 31 4.1. Descriptive Results ... 31 4.2. Regression Analysis ... 33 5. Discussion ... 37 6. Conclusion ... 38
Chapter 2:
Crowding-in or crowding-out: Subsidy design as a
strategic device to foster commercialization ... 41
Abstract ... 41
Keywords: subsidy, donation, market failure, philanthropy, social finance ... 41
JEL codes: H25, D64, G23, I38, L33 ... 41
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3. Signaling Theory, Crowding-in and Crowding-out ... 49
4. Application to Microfinance ... 54
5. Conclusion ... 63
Chapter 3:
What is a fair profit for a social enterprise? Insights
from microfinance ... 67
Abstract ... 67
Keywords: microfinance, development ethics, exploitation, institutional logic ... 67
JEL codes: F35, G21, G28, L31, M14... 67
Acknowledgments ... 67
1. Introduction ... 68
2. Profits and Pricing in Social Enterprise: The Case of Microfinance ... 71
3. Fair Profits in Microfinance: A Categorization ... 74
3.1. Profitability ... 74
3.2. Poverty Outreach ... 75
3.3. Pricing ... 77
3.4. Surplus Distribution... 79
4. Fair Profits in Microfinance: Empirical Application ... 83
4.1. Dataset Description ... 83
4.2. Empirical Application ... 85
5. Conclusion ... 92
Conclusion ... 95
1. Summary of the Dissertation ... 95
2. Contributions to Financial Literature ... 97
3. Policy and Managerial Implications ... 99
4. Limitations ...100
5. Directions for Future Research ...102
