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Determinants of Board Structure in Microfinance Institutions: Evidence from East Africa

Author

Listed:
  • Neema Mori

    (Neema Mori, Kristiansand School of Business, University of Agder, Kristiansand, Norway; University of Dar es Salaam Business School, Dar es Salaam, Tanzania. E-mail: neemagm@uia.no)

  • Trond Randøy

    (Trond Randøy, Kristiansand School of Business, University of Agder, Kristiansand, Norway. E-mail: trond.randoy@uia.no)

  • Sougand Golesorkhi

    (Sougand Golesorkhi, Manchester Metropolitan University Business School, All Saints Campus, Oxford Road, Manchester, UK. E-mail: s.golesorkhi@mmu.ac.uk)

Abstract

This study investigates the association between the unique characteristics of microfinance institutions and board structure. The agency and resource dependence theories provided theoretical guidance for this study. Using a panel dataset of 63 microfinance institutions in East Africa, we found that the presence of regulations and international influence is associated with larger boards, while the presence of founders is associated with small boards and less board independence. There is a higher level of board gender diversity in microfinance institutions managed by founders. There is greater diversity of nationalities in microfinance institutions that are internationally influenced. The implications for practice and theory from this study are further discussed. JEL Classification: G21, G34

Suggested Citation

  • Neema Mori & Trond Randøy & Sougand Golesorkhi, 2013. "Determinants of Board Structure in Microfinance Institutions: Evidence from East Africa," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 12(3), pages 323-365, December.
    • Handle: RePEc:sae:emffin:v:12:y:2013:i:3:p:323-365
    DOI: 10.1177/0972652713512916
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    References listed on IDEAS

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    More about this item

    Keywords

    Board structure; microfinance institutions; East Africa; corporate governance;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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