Title: Financial performance of microfinance institutions: does gender diversity matters?

Authors: Sujani Thrikawala; Stuart Locke; Krishna Reddy

Addresses: Department of Commerce and Financial Management, University of Kelaniya, Dalugama, Kelaniya, Sri Lanka ' Department of Finance, Waikato Management School, University of Waikato, Hamilton, New Zealand ' Department of Finance, Waikato Management School, University of Waikato, Hamilton, New Zealand

Abstract: Our study examines the relationship between gender diversity and financial performance of Sri Lankan microfinance institutions (MFIs). The OLS regression, fixed effect and random effect models are used to analyse an unbalanced panel data comprising 300 firm-year observations over the period 2007 to 2012. Our findings reveal that the institutions with female directors on the board have a significant negative effect on main financial performance but a significant positive relationship with the female CEOs and female chairpersons. We also find no significant relation between women leaders, operating cost and portfolio at risk 30 days of MFIs. This research provides insight for policy-makers regarding gender diversity on boards in Sri Lankan MFIs.

Keywords: microfinance institutions; MFIs; gender diversity; corporate governance; financial performance; panel data; Sri Lanka; regression; fixed effect model; random effect model; female directors; female CEOs; female chairpersons.

DOI: 10.1504/IJGSDS.2017.089358

International Journal of Gender Studies in Developing Societies, 2017 Vol.2 No.2, pp.91 - 110

Received: 31 Dec 2015
Accepted: 13 May 2017
Published online: 21 Jan 2018 *

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