BOARD STRUCTURE AND PERFORMANCE IN ETHIOPIAN MICROFINANCE INSTITUTIONS

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Abstract

This research investigated the effect of one governance dimension, board structure on the sustainability and outreach performance of Ethiopian MFIs. A panel data of 13 MFIs for 6 years (2003-2008) is used for the study. No study of such type is conducted in the past for the Ethiopian environment. The results indicate an experienced manager, a larger board size and educated board members all help to increase sustainability with board education having the largest effect. Manager experience and board size also have a negative effect on depth of outreach (i.e. less lending to women). Board independence has no visible effect on either sustainability or outreach. Surprisingly, no governance variable explains breath of outreach.

Keywords: Sustainability, Outreach, Governance, Ethiopia

How to cite this paper: Wale, L. E. (2015). Board structure and performance in Ethiopian microfinance institutions. Corporate Board: role, duties and composition, 11(1-1), 96-106. https://doi.org/10.22495/cbv11i1c1art2