Corporate Governance Practices in Senegalese Microfinance Institutions

This study examines the impact of corporate governance practices of microfinance institutions (MFIs) on outreach to the poor people in Sri Lanka by using three outreach variables: Breadth of outreach, percentage of women borrowers and depth of outreach. Data for 54 MFIs are analysed using regression analysis of unbalanced panel data from 2007 to 2012. The findings of this study revealed several significant relationships: Breadth of outreach in Sri Lankan MFIs improve when they have a female chair on the board but decreases when they have more female directors and client representation on the board, and female borrowers get more loans when the firm has women representation and international/donor directors on the board, but less loans if they have a female chair. This study provides a direction for future researchers to explore more, and recommend good corporate governance practices for MFIs to reach more poor clients.

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Board governance regulation, practices and their relationships with financial performance: Cambodian bank and microfinance institution context

Corporate Ownership and Control ◽

10.22495/cocv7i4sip4 ◽

2010 ◽

Vol 7 (4) ◽

pp. 25-33

Author(s):

Seng Cheaseth ◽

Seng Samreth ◽

Im Sethyra

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Positive Impact ◽

Board Governance ◽

Microfinance Institutions ◽

Governance Practices ◽

Minimum Requirements ◽

Microfinance Institution ◽

National Bank ◽

Current Board

To improve corporate governance practices of bank and microfinance institutions, the Cambodia National Bank has developed and imposed governance practices regulation for the sector. The current study investigates the current board governance practices of the sector and determines how the practices impact on financial performance. In addition, it tests the validity of relevant corporate governance theories to the context and the benefits of the regulation. The findings indicate that current board governance practices of the sector meet the minimum requirements of the regulation and, to a great extent, have positive impact on financial performance. The relevant theories validated and supported in the context of Cambodia banks and microfinance institutions.

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Board structure-performance relationship in microfinance institutions (MFIs) in an emerging economy

Corporate Governance ◽

10.1108/cg-12-2015-0166 ◽

2016 ◽

Vol 16 (5) ◽

pp. 815-830 ◽

Cited By ~ 4

Author(s):

Sujani Thrikawala ◽

Stuart Locke ◽

Krishna Reddy

Keyword(s):

Corporate Governance ◽

Sri Lanka ◽

Financial Performance ◽

Emerging Economy ◽

Board Structure ◽

Microfinance Institutions ◽

Policy Makers ◽

Content Type ◽

Regulatory Status ◽

Governance Practices

Purpose The purpose of this paper is to investigate the relationship between board structure, financial performance and outreach of microfinance institutions (MFIs) in Sri Lanka, using unbalanced panel data for 300 MFI-year observations for the period 2007 to 2012. Design/methodology/approach Empirical research relating to governance practices in MFIs is still in its infancy, and further studies are needed to determine how improved governance practices may enhance sustainability and outreach of MFIs, especially in emerging economies. The authors use regression techniques to examine whether board structure has an influence on MFI performance. Findings After controlling for internal corporate governance variables, regulatory status, size, age, leverage and year effects, the authors report that board structure does contribute to the financial performance and outreach of MFIs in Sri Lanka. Research limitations/implications The availability of data in the public domain captures the major MFIs but does constrain the generalisability of findings. Practical implications This study enables individual MFIs to evaluate potential restructuring of their boards to promote a dual mission and achieve a more accelerated economic development. Social implications The findings may encourage policy makers to promulgate policy guidelines to deepen MFI outreach to the poorest people. Originality/value Inconsistent findings in prior studies and a general lack of empirical results for the microfinance industry have led to an unclear message regarding corporate governance and MFI performance. This study fills the research gap, contributing to the existing corporate governance literature in the microfinance sector and providing evidence from an emerging economy.

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Corporate Governance and Performance of Organizations

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/05.09.2018/006 ◽

2018 ◽

Vol 9 (5) ◽

pp. 439-446

Author(s):

Hamid Ait lemqeddem ◽

◽

Mounya Tomas ◽

Keyword(s):

Corporate Governance ◽

Agency Theory ◽

Theoretical Foundation ◽

Quantitative Approach ◽

Governance Practices ◽

Deductive Method ◽

Private And Public ◽

Is Theory ◽

And Performance ◽

Do So

There is renewed interest in the need to focus on corporate governance in an environment where it is a performance imperative for all small and large organizations, private and public, beginner or established.The purpose of this study is to demonstrate the place of corporate governance practices in organizations to ensure that the board, officers, and directors take action to protect shareholder interests and all stakeholders. It is important to focus on the effect of these practices on improving performance and competitiveness. To do so, we opted for the hypothetico-deductive method with a quantitative approach. Our theoretical foundation is theory is agency theory.

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Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽

10.26643/gis.v12i4.3349 ◽

2017 ◽

Vol 12 (4) ◽

pp. 01-09

Author(s):

Asma Rafique Chughtai ◽

Afifa Naseer ◽

Asma Hassan

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Securities And Exchange Commission ◽

Executive Directors ◽

Agency Conflicts ◽

Cross Sectional ◽

Return On Equity ◽

Governance Practices ◽

Code Of Corporate Governance ◽

The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

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