Analyzing International Debt Financing and Microfinance Institutions

This essay analyzes the impact of international debt financing on the performance of Micro Finance Institutions (MFIs) and their social performance. It examines the relationship between international funding in MFIs and their social performance, while also evaluating the connection between international funding and financial performance. The article aims to detect the significance of International Debt Financing and Micro Finance Institutions. The intended audience includes International Debt Financing entities, Micro Finance Institutions, Banks, and Researchers. The essay critiques the article, discussing the validity of its data and assertions, particularly concerning the measures used by MFIs and the impact of their operations on Social Responsible Investment. The author's assertions regarding unethical measures in debt financing distribution are deemed relatively accurate, highlighting the challenges faced by MFIs in balancing financial and social bottom lines.

Running head: INTERNATIONAL FINANCE
International Finance
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
1. Identifying the main topic or question:..................................................................................2
2. Identifying the author’s intended audience:...........................................................................2
3. Critique the article and share your thoughts-what appears to be valid and invalid:..............3
4. Indicating the agreement within author’s assertions:.............................................................4
References:.................................................................................................................................5

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Article: “Mersland, R., & Urgeghe, L. (2013). International debt financing and
performance of microfinance institutions. Strategic Change, 22(1‐2), 17-29.”
1. Identifying the main topic or question:
The main topic or question of the article is to identify the impact of debt financing on
the performance of the Micro Finance Institutions, which could eventually help in improving
their operational capability. In addition, the article also helps in understanding the level of
social performance between the debt financing provided to Micro Finance Institutions.
Moreover, the article also focuses on providing relevant hypothesises where the presence of
international finding in a Micro Finance Institutions is positively related to its social
performance. Furthermore, the negative screening is also evaluated, where there is no
relationship funding between international funding in an MFI, while indicating the positive
relationship with financial performance. Hence, the article focuses on understanding and
detecting the relationship between Micro Finance Institutions and social responsible
investment, which is conducted with the help of International debt financing. The hypothesis
used in the article aims in detecting the significance of International Debt Financing and
Micro Finance Institutions (Mersland & Urgeghe, 2013).
2. Identifying the author’s intended audience:
From the overall evaluation it could be identified that the target audience of the author
mainly consist International Debt Financing, Micro Finance Institutions, Banks, and
Researchers. The aim of the author is to detect the impact of the current Micro Finance
Institutions in improving the Social Responsible Investments. The Micro Finance Institutions
from the data will be able to understand the level of social financing, which is conducted by
the institutions in distributing the debt finance to the adequate individuals. Furthermore, the
data collected data in the article will also allow international debt financing organisations to

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understand the effectiveness of the Micro financing institutions on distributing the debt in an
ethical manner. The data of the article could also be used by banks, while identifying the
individuals who are able to pay support the loan and adequately pay their mortgages. This
mainly helps the banks in improving its database and approach adequate individuals for
loans. Lastly, with the database help researchers could utilise and analyse different level of
measures that might analyse the effectiveness of Micro Financing Institutions, which could
be used in different researches.
3. Critique the article and share your thoughts-what appears to be valid and invalid:
The article indicates the overall efficiency of Micro Financing Institutions in
improving the impact of Social Responsible Investment, which is been conducted. In
addition, the article only focuses on the measures used by the Micro Financing Institutions
and ignores the overall viability of companies having access to the international training
sphere. Moreover, the data collected for detecting efficiency of the Micro Financing
Institutions does not effectively understand the impact of its operations on Social responsible
financing. The data analysis part of the article mainly includes financial evaluation, which
does not effectively indicate the level of impact it has on operations of Micro Financing
Institutions. The validity of the data collected from financial performance if mainly viable,
which adequately depicts the actual impact of the measures used by Micro Financing
Institutions. On the other hand, the data collected for dummy rural data is not adequate,
which indicates the invalidity of the results obtained in the article. The data also has dummy
international indicator, dummy voluntary savings, dummy internal auditor, where the actual
impact of the operational conducted by Micro Financing Institutions is not detected.

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4. Indicating the agreement within author’s assertions:
The assertion made by the author is relatively accurate, as the major problems related
to Micro Financing Institutions conducting Social responsible financing. The author directly
indicates the wrongful measures that is used by Micro Financing Institutions in distributing
the debt finance to relevant individuals. Moreover, the combination of the data used by the
author is relevantly accurate, as it helps in understanding the impact of debt finance on social
responsible financing. In addition, the author directly challenges the statement of
international funders of Microfinance claim to pursue both financial and social bottom lines,
while conducting investment options (Mersland & Urgeghe, 2013). The results of the
research also indicate that individual with adequate influence is able to gather the debt
financing needed for its operations, while companies with high professional and efficiency
operations are not provided with the debt financing. The assertion regarding the efficiency of
Micro Financing Institutions conducting unethical measures in distributing the debt financing
to individuals using international trades. Hence, the confident statement conducted by author
regarding the current measures used by Micro Financing Institutions is relevantly accurate.

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References:
Mersland, R., & Urgeghe, L. (2013). International debt financing and performance of
microfinance institutions. Strategic Change, 22(1‐2), 17-29.