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Performance and corporate governance in microfinance institutions

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Author Info
Mersland, Roy
Strøm, Reidar Øystein
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.

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File URL: http://mpra.ub.uni-muenchen.de/3887/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3887.

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Date of creation: Jun 2007
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Handle: RePEc:pra:mprapa:3887

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Related research
Keywords: Microfinance organizations governance performance

Find related papers by JEL classification:
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
G30 - Financial Economics - - Corporate Finance and Governance - - - General
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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  3. repec:rus:hseeco:72155 is not listed on IDEAS
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  17. Schmidt, Klaus M, 1997. "Managerial Incentives and Product Market Competition," Review of Economic Studies, Blackwell Publishing, vol. 64(2), pages 191-213, April. [Downloadable!] (restricted)
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    Other versions:
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