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Performance and corporate governance in microfinance institutions

  • Mersland, Roy
  • Strøm, Reidar Øystein

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/3887/1/MPRA_paper_3887.pdf
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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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