Research Article of American Journal of Financial Management
The Impact of Internal Control on the Profitability of Microfinance Institutions in Senegal
Duke D Obonyo
Huanzhong Normal University
This study sought to establish the relationship between internal control and profitability of the Microfinance Institutions in Senegal. The study utilizes a survey design to sample 118 MFI’s to address three objectives namely: To establish the influence of internal control on Earnings Per Share, (EPS) of MFI’s, To establish the influence of internal control on Return On Assets (ROA), The influence of internal control on return on Equity (ROE), and finally, the influence of internal control on profit margin of MFI’s. The study utilized multiple regression analysis to analyses quantitative data collected from the MFI’s and the hypothesis was tested at 95% confidence interval. The study found out that all dimensions of internal control were positively and significantly associated to the four indices of profitability of MFI’s in Senegal. The study recommends that the government of Senegal issues a rational policy framework to ensure all MFIS comply with the provisions of the Senegalese Central Bank on internal controls systems of all financial institutions in the country.
Keywords: Earnings per Share, Return on Assets, Profit Margin, Return on Equity, Internal Control
How to cite this article:
Duke D Obonyo.The Impact of Internal Control on the Profitability of Microfinance Institutions in Senegal. American Journal of Financial Management, 2018,1:5
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