Abu Zafar M. Shahriar
Monash University
BusinessEconomicsLoanMicrofinanceEconomic growth
What is this?
Publications 14
#1Abu Zafar M. Shahriar (Monash University)H-Index: 5
#2Luisa A. Unda (Monash University)H-Index: 2
Last. Quamrul Alam (Central Queensland University)H-Index: 11
view all 3 authors...
Abstract Growing evidence suggests that women are more likely to repay collateral-free microloans than men. However, we know little about what explains such gender differences. We hypothesize that better repayment performance of women microcredit borrowers can largely be explained by gender differences in innate trustworthiness. We conduct a trust game and a microloan repayment game in rural Bangladesh. We find that women are more trustworthy than men and that they are more likely to repay their...
1 CitationsSource
#1Abu Zafar M. Shahriar (Monash University)H-Index: 5
#2Dean A. Shepherd (Mendoza College of Business)H-Index: 72
Abstract Domestic violence is the most prevalent form of gender-based violence that threatens the wellbeing and dignity of women. In this paper, we examine whether and how exposure to physical or sexual assault by male partners influences women's decision to initiate a new business when they have access to financing. We collected primary data from rural Bangladesh in collaboration with a microfinance institution that provided small collateral-free loans to a group of married women. We conducted ...
We examine whether men and women in patriarchal and matrilineal societies differ in their propensity to engage in entrepreneurship. We conduct two studies. Study 1 involves face-to-face interviews to identify individuals who are in the process of starting a new business. We find that men in patriarchal societies are more likely than women to initiate action to start a new business. This result, however, is reversed in matrilineal societies, where women are more likely than men to do so. The resu...
2 CitationsSource
#1Ferdinand A. Gul (Deakin University)H-Index: 40
#2Jyotirmoy PodderH-Index: 1
Last. Abu Zafar M. Shahriar (Monash University)H-Index: 5
view all 3 authors...
We draw on the political economy theory and examine whether incumbent government’s political ideology affects the performance of microfinance institutions (MFIs). We collect data on 619 MFIs from 75 countries over the period of 1996–2012 and merge them with country-level data on government ideology and other economic and institutional factors. We find that MFIs operating in a left wing regime have higher portfolio growth rates relative to the ones operating in a right wing or a centrist regime. ...
7 CitationsSource
Prior research suggests that long-term relationships with microfinance institutions (MFIs) are necessary for sustained growth of microcredit-initiated small businesses. However, we present robust evidence that long-term lending relationships may worsen the credit risk of MFIs. Based on information on 1087 MFIs from 69 countries over the period of 2003–2014, we show that, at the initial stage, credit risk declines as an MFI makes more relationship-based loans, but after a certain level, default a...
3 CitationsSource
Abstract This paper investigates the impact of intimate partner violence on poor women's repayment behavior in microcredit. In a laboratory-based field experiment, we extended collateral-free small loans to 485 currently married women in rural Bangladesh and observed their repayment decisions over multiple loan cycles. In a post-experiment survey, we asked subjects about their experience of spousal violence. We find that women who experienced physical or sexual violence in the last 12 months are...
6 CitationsSource
#1Abu Zafar M. Shahriar (Monash University)H-Index: 5
#2Susan Schwarz (UNNC: The University of Nottingham Ningbo China)H-Index: 4
Last. Alexander Newman (Monash University)H-Index: 24
view all 3 authors...
This article examines whether the profit orientation of a microfinance institution (MFI) affects its decision to extend loans to business start-ups. Based on information from 198 MFIs in 65 countries, we show that for-profit MFIs are less likely to provide financial capital to business start-ups than their not-for-profit counterparts. This results from the adoption of a dominant ‘commercial’ logic by for-profit MFIs, which motivates them to maximize profit by extending loans to less risky ventur...
25 CitationsSource
#1Sugato Chakravarty (Purdue University)H-Index: 22
#2Abu Zafar M. Shahriar (Monash University)H-Index: 5
We examine partner selection decision in the formation of borrowing group in joint-liability-based microcredit. We do so within the context of framed field experiments conducted in Bangladesh. We find that when joint-liability payments are made using money from the borrower’s mandatory savings account, risky borrowers display a willingness to offer side payments that are sufficiently large o attract safe borrowers to form groups. Many important theoretical results in microcredit are based solely...
12 CitationsSource
#1Ferdinand A. Gul (Monash University)H-Index: 40
#2Jyotirmoy PodderH-Index: 1
Last. Abu Zafar M. Shahriar (Monash University)H-Index: 5
view all 3 authors...
We examine whether the performance of a microfinance institution (MFI) is affected by the political ideology of the government of its host country. Using data on 619 MFIs in 75 countries, we show that in countries with a left wing government, MFIs enjoy a higher portfolio growth relative to the MFIs in countries with a right wing or a centrist government. MFIs that operate in a left wing regime have lower operating costs, lower default costs, and lower average costs of funds. However, despite th...
1 Citations
#1Sugato ChakravartyH-Index: 22
view all 3 authors...
We examine the role of lender-entrepreneur relationships on the lending decision of microfinance institutions. Using primary data from Bangladesh, we show that the likelihood of being approved for microcredit increases in the magnitude of relationship driven information, and decreases in the lack of precision of such information. We further show that large microfinance institutions rely more on relationship metrics, as opposed to their smaller counterparts, because they are better able to produc...