Microfinance sustainability amid gender inequalities in G20 emerging economies: the role of female board representation and voice and accountability

Kuldeep Singh and Arpita Sharma

Journal of Public Budgeting, Accounting & Financial Management, 2026, 1-24

Abstract: PurposeThe role of microfinance institutions (MFIs) in fostering economic development in emerging markets cannot be denied. Nevertheless, concerns regarding their financial sustainability persist. This study examines the relationship between social performance and state-level governance indicators, specifically voice and accountability, in shaping the financial sustainability of MFIs. In addition, the research examines how social performance, amid prevailing gender inequalities, shapes the financial sustainability of MFIs.Design/methodology/approachWe analyse panel data from MFIs across the emerging economies of the G20, sourced from the MIX Market database of the World Bank. Gender inequality index (GII) data were obtained from the United Nations Development Programme website. Using dynamic panel data analysis, specifically the generalised method of moments (GMM), we estimate robust standard errors. Additionally, we employ moderated hierarchical regression to assess the interaction effects of social performance with voice and accountability, under conditions of gender inequality.FindingsThe results indicate that financial sustainability in the previous period significantly predicts current performance, suggesting persistence over time. Female representation on boards enhances operational self-sufficiency (OSS), though it does not have a direct effect on return on assets (ROA). GII negatively affects both ROA and OSS. While voice and accountability (V&A) show a slightly negative association with ROA, the most compelling finding is that female board presence mitigates the adverse impacts of both GII and V&A on financial sustainability.Originality/valueThis study is unique in examining the combined effects of social performance and voice and accountability within the broader context of gender inequality in emerging markets.

Keywords: Microfinance institutions; Financial sustainability; Social performance; Voice and accountability; Gender inequality index; Emerging economies (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpbafm:jpbafm-06-2025-0159

DOI: 10.1108/JPBAFM-06-2025-0159

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