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Corporate Governance In Microfinance Institutions: Board Composition And The Ability To Face Institutional Voids, Subrata Chakrabarty, A E. Bass
Corporate Governance In Microfinance Institutions: Board Composition And The Ability To Face Institutional Voids, Subrata Chakrabarty, A E. Bass
Subrata Chakrabarty
Research Question/Issue: We utilize institutional theory to examine corporate governance in microfinance institutions (MFIs). Many MFIs operate at the bottom of the economic pyramid (BOP), which is usually agrarian, impoverished, and plagued with institutional voids. We investigate the link between the composition of the boards of MFIs and the ability of the MFIs to face institutional voids to ensure organizational viability.
Research Findings/Insights: We find that MFIs with boards that have more socio-economic expertise and female representation are better able to lower the MFI’s costs of operating at the BOP. However, this relationship weakens when the effectiveness of agrarian institutions …