Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent States
AbstractThis paper presents the first evidence on the impact of board diversity and independence, and management compensation on outreach and sustainability of microfinance institutions in Central and Eastern Europe and the Newly Independent States. Results indicate that board diversity improves both outreach and sustainability while larger and less independent boards lower sustainability. Performance-based compensation is not effective in aligning the interest of managers and stakeholders, and underpaying managers reduces outreach.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24568.
Date of creation: 2005
Date of revision:
governance; microfinance; board of directors; managerial compensation; Financial Economics;
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