Purpose
Microfinance institutions (MFIs) are known for their contribution to the women empowerment and poverty alleviation but it is not clear about the role of gender on the performance of this industry. It is important to explore the representation of both the gender in three levels, namely, decision-making, day-to-day management and implementation of the micro-financial services. This study aims to examine the impact of female board members, female managers and female field officers on the financial and social performance of the MFIs.
Design/methodology/approach
The authors have used random effect panel data analysis. The study covers 104 MFIs operating in India. The time period of the analysis is from 2010 to 2014.
Findings
The study has shown that as the number of female directors within the board increase there is an increase in cost per borrower. This is an indication that more female clients are being targeted. The increase in number of female managers leads to an increase in the number of active borrowers. The increase in the number of female staff members leads to an increase of operational self-sufficiency and yield of the gross portfolio.
Research limitations/implications
The present study has faced a lot of limitation due to the non-availability of the secondary data on the governance system of the microfinance industry. The study could not be undertaken for an extended period because of the unavailability of data for a long period.
Practical implications
This study has highlighted the role of gender in case of performance of microfinance institutions. The gender diversity at the field level has shown to enhance the financial performance of the MFIs. So, the MFIs should try to bring gender diversity at the operation level.
Social implications
This study has shown that an increase of woman directors at the board level increase female clients of MFIs. The increase of female managers also enhances number of female clients. So, the gender diversity at the managerial level and director level help MFIs to meet their social performance by reaching to more number of needy female clients.
Originality/value
The gender diversity at the three levels, namely, board level, managerial level and field operation level has not been analyzed in the Indian context. In India MFIs mainly target the female clients so in this context having gender diversity at the three levels of operation of the MFIs, which can improve both the financial and social performance of the MFIs.
Self-employment holds the key to continuity of employment. Selfemployed members of self-help groups (SHGs) fare better than their wage-earning counterparts when it comes to continuity of employment. These were some of the findings of a study based on two rounds of primary surveys-one in 2005 and the other in 2009-of the same set of SHG members from the North 24 Parganas district of West Bengal in India. The study dwelt on the factors influencing the different indicators of women empowerment among the members of 26 matured all-woman SHGs. It also isolated the socioeconomic demographic factors influencing the joint probability of a group member being both empowered and employed. The study concluded that training significantly influences various dimensions of empowerment, and the trained group members are more likely to be both empowered as well as employed. Gender, Technology and Development 16(3) 329-355
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