ROLE OF MANAGERIAL COMPETENCIES AND RISK-TAKING BEHAVIOR IN FINANCIAL SERVICE OUTREACH OF MICROFINANCE BANKS IN PAKISTAN

Fozia Taj (), Kashif Rashid () and Yasir Tariq
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Fozia Taj: COMSATS University, Abbottabad Campus
Kashif Rashid: COMSATS University, Abbottabad Campus

IBT Journal of Business Studies (JBS), 2019, vol. 15, issue 2, 24-42

Abstract: This study aims to investigate the relationship between the managerial risktaking, managerial competencies and financial service outreach of microfinance banks in Pakistan.Primary data was collected from 36 branches of microfinance banks MFBs in nine cities.The unit of investigation is the branch manager and senior credit officer of each MFB branch.Descriptive statistics, correlation and regression, are used for data analysis.This study found a positive relationship between financial service outreach of MFBs and managerial competencies financial service outreach also has a positive relationship with the risktaking behavior of managers.There is a positive relationship between risktaking behavior and financial service outreach of banks.The risktaking behavior partially mediates the relationship between the managerial competencies and financial service outreach.The magnitude of the relationship between managerial competencies and outreach is significant, and its magnitude reduces when there is the mediation of managerial risktaking behavior between them.Thus, managerial competencies, along with risktaking behavior are the keys drivers of financial service outreach of MFBs.This study informs MFB’s top management and policymakers that competencies of managers and their calculated risktaking propensities determined outreach performance of the MFBs.

Keywords: Micro-finance; managerial competencies; financial service outreach; Risk-taking behavior; mediating effect; Pakistan (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:15:y:2019:i:2:p:24-42

DOI: 10.46745/ilma.ibtjbs.2019.152.3

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