Corporate Governance and Depository Institutions Failure: The Case of an Emerging Market Economy

Desrochers, Martin; Fischer, Klaus

doi:10.2139/ssrn.345980

Cited by 6 publications

(2 citation statements)

References 97 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The incentive problems between owners and managers may be more pronounced in NPOs, but NPOs have the compensatory benefit of reducing adverse selection of customers and avoiding moral hazard (Hansmann, 1996;Desrochers and Fischer, 2002;Mersland, forthcoming) because they are better able to tap into local information networks. Evidence in Caprio and Vittas (1997) and Cull et al (2006) confirms this.…”

Section: Governance and Performance In Mfismentioning

confidence: 99%

Performance and governance in microfinance institutions

Mersland¹,

Strøm

2009

Journal of Banking & Finance

501

547

View full text Add to dashboard Cite

We examine the relationship between firm performance and corporate governance in microfinance institutions (MFI) using a self-constructed global dataset on MFIs collected from third-party rating agencies. Using random effects panel data estimations, we study the effects of board and CEO characteristics, firm ownership type, customer-firm relationship, and competition and regulation on an MFI's financial performance and outreach to poor clients. We find that financial performance improves with local rather than international directors, an internal board auditor, and a female CEO. The number of credit clients increase with CEO/chairman duality. Outreach is lower in the case of lending to individuals than in the case of group lending. We find no difference between non-profit organisations and shareholder firms in financial performance and outreach, and we find that bank regulation has no effect. The results underline the need for an industry specific approach to MFI governance. 94

show abstract

Section: Governance and Performance In Mfismentioning

confidence: 99%

Performance and governance in microfinance institutions

Mersland¹,

Strøm

2009

Journal of Banking & Finance

501

547

View full text Add to dashboard Cite

show abstract

“…The implicit conclusion is that in ownerless non-profit organizations like NGOs, agency costs are higher. However, agency theory also predicts that the non-profit organizations can have an offsetting benefit of reducing customer adverse selection and moral hazard (Hansmann, 1996, Desrochers andFischer, 2002), since they may be closer to the customers and better able to tap into local information networks. In microfinance where customers generally have lower levels of education, it makes good sense that Macey and O'Hara ((2003) suggest that the relationships with depositors and borrowers are as important to the success of the bank as the manager's and the board's relationship with its owners.…”

Section: Ownership Theoriesmentioning

confidence: 99%

Performance and trade‐offs in Microfinance Organisations—Does ownership matter?

Mersland¹,

Strøm

2008

J of Intl Development

141

114

View full text Add to dashboard Cite

Policy advocates argue for the transformation of non-government Microfinance Organizations (MFOs) into shareholder owned firms. This paper investigates whether the proposed superiority of shareholder owned MFOs is empirically supported. The findings indicate that the difference between shareholder owned MFOs and non-government MFOs is minimal. Our results contradict established paradigms and policy guidelines in the industry. However, the results are not necessarily surprising since ownership theories support our findings. So do also studies from the general banking markets as well as historical studies. Adaptation of legal frameworks allowing well-performing NGOs to mobilize savings appears to be a better option than transformation.68

show abstract

The determinants of MFIs’ social and financial performances in sub-Saharan Africa: has mission drift occurred?

Arrassen

2017

Ann Finance

View full text Add to dashboard Cite

Corporate Governance and Depository Institutions Failure: The Case of an Emerging Market Economy

Cited by 6 publications

References 97 publications

Performance and governance in microfinance institutions

Performance and governance in microfinance institutions

Performance and trade‐offs in Microfinance Organisations—Does ownership matter?

The determinants of MFIs’ social and financial performances in sub-Saharan Africa: has mission drift occurred?

Contact Info

Product

Resources

About