Evaluating the Relationship Between Financial Inclusion Initiatives and Accounting Transparency in Microfinance Institutions

Posted: Jan 16, 2023

• Mia Allen
• Mia Hernandez
• Mia Ramirez

Abstract

The global expansion of financial inclusion initiatives represents one of the most significant developments in international development policy over the past two decades. Microfinance institutions (MFIs) have emerged as crucial vehicles for extending financial services to previously excluded populations, operating at the intersection of social mission and financial sustainability. While substantial research has examined the operational effectiveness and social impact of microfinance, the relationship between financial inclusion objectives and accounting transparency practices remains underexplored. This research gap is particularly consequential given the dual accountability pressures facing MFIs: they must demonstrate financial viability to investors and regulators while simultaneously proving their social impact to donors