Comparing financial transparency between for-profit and nonprofit suppliers of public goods: Evidence from microfinance

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dc.contributor.author Goodell, John W.
dc.contributor.author Goyal, Abhinav
dc.contributor.author Hasan, Iftekhar
dc.date.accessioned 2020-01-09T11:34:55Z
dc.date.available 2020-01-09T11:34:55Z
dc.date.issued 2019-11-08
dc.identifier.citation Goodell, J. W., Goyal, A. and Hasan, I. (2019) 'Comparing financial transparency between for-profit and nonprofit suppliers of public goods: Evidence from microfinance', Journal of International Financial Markets, Institutions and Money, 101146 (16 pp). doi: 10.1016/j.intfin.2019.101146 en
dc.identifier.startpage 1 en
dc.identifier.endpage 16 en
dc.identifier.issn 1042-4431
dc.identifier.uri http://hdl.handle.net/10468/9469
dc.identifier.doi 10.1016/j.intfin.2019.101146 en
dc.description.abstract Previous research finds market financing is favored over relationship financing in environments of better governance, since the transaction costs to investors of vetting asymmetric information are thereby reduced. For industries supplying public goods, for-profits rely on market financing, while nonprofits rely on relationships with donors. This suggests that for-profits will be more inclined than nonprofits to improve financial transparency. We examine the impact of for-profit versus nonprofit status on the financial transparency of firms engaged with supplying public goods. There are relatively few industries that have large number of both for-profit and nonprofit firms across countries. However, the microfinance industry provides the opportunity of a large number of both for-profit and nonprofit firms in relatively equal numbers, across a wide array of countries. Consistent with our prediction, we find that financial transparency is positively associated with a for-profit status. Results will be of broad interest both to scholars interested in the roles of transparency and transaction costs on market versus relational financing; as well as to policy makers interested in the impact of for-profit on the supply of public goods, and on the microfinance industry in particular. en
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Elsevier en
dc.relation.uri http://www.sciencedirect.com/science/article/pii/S1042443118304839
dc.rights © 2019 Elsevier B.V. All rights reserved. This manuscript version is made available under the CC BY-NC-ND 4.0 licence. en
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/ en
dc.subject Financial transparency en
dc.subject Nonprofits en
dc.subject Market versus relationship financing en
dc.subject Microfinance institutions en
dc.title Comparing financial transparency between for-profit and nonprofit suppliers of public goods: Evidence from microfinance en
dc.type Article (peer-reviewed) en
dc.internal.authorcontactother Abhinav Goyal, Cork University Business School, University College Cork, Cork, Ireland. +353-21-490-3000 Email: abhinav.goyal@ucc.ie en
dc.internal.availability Full text available en
dc.check.info Access to this article is restricted until 24 months after publication by request of the publisher. en
dc.check.date 2021-11-08
dc.date.updated 2020-01-09T11:30:27Z
dc.description.version Accepted Version en
dc.internal.rssid 500173278
dc.description.status Peer reviewed en
dc.identifier.journaltitle Journal Of International Financial Markets, Institutions And Money en
dc.internal.copyrightchecked No
dc.internal.licenseacceptance Yes en
dc.internal.IRISemailaddress abhinav.goyal@ucc.ie en
dc.identifier.articleid 101146 en
dc.internal.bibliocheck In press. Check vol / issue / page range. Amend citation as necessary. en


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© 2019 Elsevier B.V. All rights reserved. This manuscript version is made available under the CC BY-NC-ND 4.0 licence. Except where otherwise noted, this item's license is described as © 2019 Elsevier B.V. All rights reserved. This manuscript version is made available under the CC BY-NC-ND 4.0 licence.
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