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

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dc.check.date2021-11-08
dc.check.infoAccess to this article is restricted until 24 months after publication by request of the publisher.en
dc.contributor.authorGoodell, John W.
dc.contributor.authorGoyal, Abhinav
dc.contributor.authorHasan, Iftekhar
dc.date.accessioned2020-01-09T11:34:55Z
dc.date.available2020-01-09T11:34:55Z
dc.date.issued2019-11-08
dc.date.updated2020-01-09T11:30:27Z
dc.description.abstractPrevious 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.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.articleid101146en
dc.identifier.citationGoodell, 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.2019.101146en
dc.identifier.doi10.1016/j.intfin.2019.101146en
dc.identifier.endpage16en
dc.identifier.issn1042-4431
dc.identifier.journaltitleJournal Of International Financial Markets, Institutions And Moneyen
dc.identifier.startpage1en
dc.identifier.urihttps://hdl.handle.net/10468/9469
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urihttp://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.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectFinancial transparencyen
dc.subjectNonprofitsen
dc.subjectMarket versus relationship financingen
dc.subjectMicrofinance institutionsen
dc.titleComparing financial transparency between for-profit and nonprofit suppliers of public goods: Evidence from microfinanceen
dc.typeArticle (peer-reviewed)en
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