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Female leadership, performance, and governance in microfinance institutions

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  • Strøm, Reidar Øystein
  • D’Espallier, Bert
  • Mersland, Roy

Abstract

This paper investigates the relations between female leadership, firm performance, and corporate governance in a global panel of 329 Microfinance Institutions (MFIs) in 73 countries covering the years 1998–2008. The microfinance industry is particularly suited for studying the impact of female leadership on governance and performance because of its mission orientation, its entrepreneurial nature, diverse institutional conditions, and high percentage of female leaders. We find female leadership to be significantly associated with larger boards, younger firms, a non-commercial legal status, and more female clientele. Furthermore, we find that a female chief executive officer and a female chairman of the board are positively related to MFI performance, but this result is not driven by improved governance.

Suggested Citation

  • Strøm, Reidar Øystein & D’Espallier, Bert & Mersland, Roy, 2014. "Female leadership, performance, and governance in microfinance institutions," Journal of Banking & Finance, Elsevier, vol. 42(C), pages 60-75.
  • Handle: RePEc:eee:jbfina:v:42:y:2014:i:c:p:60-75
    DOI: 10.1016/j.jbankfin.2014.01.014
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    Citations

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    Cited by:

    1. Nawaz, Ahmad & Iqbal, Sana, 2015. "Financial Performance And Corporate Governance In Microfinance: Who Drives Who? An Evidence From Asia," MPRA Paper 65327, University Library of Munich, Germany.
    2. repec:eee:mulfin:v:40:y:2017:i:c:p:63-76 is not listed on IDEAS
    3. repec:pdc:jrnbeh:v:14:y:2018:i:1:p:117-131 is not listed on IDEAS
    4. Périlleux, Anaïs & Szafarz, Ariane, 2015. "Women Leaders and Social Performance: Evidence from Financial Cooperatives in Senegal," World Development, Elsevier, vol. 74(C), pages 437-452.
    5. repec:eee:reveco:v:53:y:2018:i:c:p:88-97 is not listed on IDEAS
    6. repec:eee:riibaf:v:42:y:2017:i:c:p:689-709 is not listed on IDEAS
    7. repec:eaa:eerese:v:17:y2017:i:2_4 is not listed on IDEAS
    8. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-016-9824-8 is not listed on IDEAS
    9. Daudi Pascal & Leif Atle Beisland & Roy Mersland, 2016. "The origin of CEOs and its influence on microfinance performance and risk-taking," Working Papers CEB 16-046, ULB -- Universite Libre de Bruxelles.
    10. repec:eee:intfin:v:53:y:2018:i:c:p:307-319 is not listed on IDEAS
    11. García-Meca, Emma & García-Sánchez, Isabel-María & Martínez-Ferrero, Jennifer, 2015. "Board diversity and its effects on bank performance: An international analysis," Journal of Banking & Finance, Elsevier, vol. 53(C), pages 202-214.
    12. repec:kap:jmgtgv:v:22:y:2018:i:1:d:10.1007_s10997-017-9381-9 is not listed on IDEAS
    13. Périlleux, Anaïs & Szafarz, Ariane, 2015. "Women Leaders and Social Performance: Evidence from Financial Cooperatives in Senegal," World Development, Elsevier, vol. 74(C), pages 437-452.
    14. Ina Ganguli & Ricardo Hausmann & Martina Viarengo, 2017. "Career dynamics and gender gaps among employees in the microfinance sector," WIDER Working Paper Series 117, World Institute for Development Economic Research (UNU-WIDER).
    15. Nawaz, Ahmad & Iqbal, Sana, 2015. "Does Social Performance Drives Corporate Governance Mechanism in MFIs? An Issue of Endogeneity," MPRA Paper 65312, University Library of Munich, Germany.
    16. Tchakoute Tchuigoua, Hubert, 2015. "Determinants of the governance quality of microfinance institutions," The Quarterly Review of Economics and Finance, Elsevier, vol. 58(C), pages 32-43.

    More about this item

    Keywords

    Female leadership; Financial performance; Microfinance; MFIs; Cross-country panel data;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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