Performance and corporate governance in microfinance institutions

Roy Mersland and Reidar Strøm

MPRA Paper from University Library of Munich, Germany

Abstract: We trace the relationship between firm performance and corporate governance in microfinance institutions (MFI) utilising a self constructed global data set on MFIs, collected from third-party rating agencies. We study the effect of board characteristics, ownership type, competition and regulation on the MFI's outreach to poor clients and its financial performance. The results show that split roles of CEO and chairman, a female CEO, and competition are important explanations. Larger board size decreases the average loan size while individual guaranteed loan increases it. No difference between nonprofit organisations and shareholder firms in financial performance and outreach is found.

Keywords: Microfinance; MFI; corporate governance; performance (search for similar items in EconPapers)
JEL-codes: G21 G30 G32 J23 O16 (search for similar items in EconPapers)
Date: 2007-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Performance and corporate governance in microfinance institutions (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:3888

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