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Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent States

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  • Hartarska, Valentina M.

Abstract

This 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.

Suggested Citation

  • Hartarska, Valentina M., 2005. "Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent States," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24568, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24568
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    File URL: http://ageconsearch.umn.edu/record/24568/files/cp05ha05.pdf
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    References listed on IDEAS

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    Keywords

    Financial Economics;

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