ASSESSMENT OF THE CAPITAL STRUCTURE IN ETHIOPIA MICROFINANCE INSTITUIONs.

Abstract

This study conducted on the assessment of capital structure on microfinance institutions in Ethiopia is an attempt to indicate the importance of capital structure in financial institutions such as micro finances and others. The main objective of the study is to evaluate the capital structure of microfinance institutions as requirements in compare. The target population for these particular studies all the microfinance institutions currently operating in the country. Among the MFIs four (4) micro finance institutions was selected using purposive sampling technique. Purposive sampling was used to select MFIs which better performance in order to analysis capital structure institution. Descriptive statistical tools are used in analyzing the data collected. Hence, the nature of the Study is descriptive. Finally, based on the findings possible recommendations are given. These include the issues impeding capital structure on the micro finance regarding the valuing of properties offered for collateral, lengthy of loan processing, amount of loan processed and approved, loan period, and discretionary limits affecting the performance of capital structure managements.