Subsidies and financial performances of the microfinance institutions: Does management matter?

Marek Hudon

No 05-015.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: This paper uses a unique database from a leading microfinance rating agency to assess the impact of management on the functioning of microfinance institutions (MFIs). It focuses on MFIs’ financial performance, and on the level of subsidies received. The results show that the management skills are associated to the financial performances. The technical, organisational and communication competences of the top managers seem to play a key role among the four management dimensions analysed by the rating agency. Furthermore, the level of subsidies granted has a very limited impact on management quality. Results show that the well-managed MFIs are not significantly older or active in corrupted countries.

Keywords: microfinance; subsidies; management; governance; non-profit; Latin AMerica. (search for similar items in EconPapers)
JEL-codes: L31 M54 O16 Q14 (search for similar items in EconPapers)
Pages: 28 p.
Date: 2006
New Economics Papers: this item is included in nep-cfn, nep-fmk and nep-mfd
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Citations: View citations in EconPapers (11)

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