Does Corporate Governance Impact the Financial Performance of Microfinance Institutions (MFIs)? A Case Study in Sri Lanka

2013 ◽  
Author(s):  
Sujani Thrikawala ◽  
Stuart Locke ◽  
Krishna Reddy
Keyword(s):  
Corporate Governance ◽  
Sri Lanka ◽  
Financial Performance ◽  
Microfinance Institutions

Board structure-performance relationship in microfinance institutions (MFIs) in an emerging economy

2016 ◽  
Vol 16 (5) ◽  
pp. 815-830 ◽  
Author(s):  
Sujani Thrikawala ◽  
Stuart Locke ◽  
Krishna Reddy
Keyword(s):  
Corporate Governance ◽  
Sri Lanka ◽  
Financial Performance ◽  
Emerging Economy ◽  
Board Structure ◽  
Microfinance Institutions ◽  
Policy Makers ◽  
Content Type ◽  
Regulatory Status ◽  
Governance Practices

Purpose The purpose of this paper is to investigate the relationship between board structure, financial performance and outreach of microfinance institutions (MFIs) in Sri Lanka, using unbalanced panel data for 300 MFI-year observations for the period 2007 to 2012. Design/methodology/approach Empirical research relating to governance practices in MFIs is still in its infancy, and further studies are needed to determine how improved governance practices may enhance sustainability and outreach of MFIs, especially in emerging economies. The authors use regression techniques to examine whether board structure has an influence on MFI performance. Findings After controlling for internal corporate governance variables, regulatory status, size, age, leverage and year effects, the authors report that board structure does contribute to the financial performance and outreach of MFIs in Sri Lanka. Research limitations/implications The availability of data in the public domain captures the major MFIs but does constrain the generalisability of findings. Practical implications This study enables individual MFIs to evaluate potential restructuring of their boards to promote a dual mission and achieve a more accelerated economic development. Social implications The findings may encourage policy makers to promulgate policy guidelines to deepen MFI outreach to the poorest people. Originality/value Inconsistent findings in prior studies and a general lack of empirical results for the microfinance industry have led to an unclear message regarding corporate governance and MFI performance. This study fills the research gap, contributing to the existing corporate governance literature in the microfinance sector and providing evidence from an emerging economy.

scholarly journals The Impact of Information Communication and Technology Utilization on the Financial Performance of Microfinance Institutions in Rwanda Case Study: Reseau Interdiocesain De Microfinance (Rim) Ltd, Rwanda (2011 -2015)

2017 ◽  
Vol 4 (2) ◽  
pp. 13
Author(s):  
Jean Bosco Harelimana
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Positive Impact ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Information Communication ◽  
Qualitative And Quantitative Methods ◽  
Descriptive Survey ◽  
The Impact

The study analyzed the impact of ICT utilization on the financial performance of microfinance institutions inRwanda with case study of Réseau Interdiocesain de microfinance (RIM) Ltd undertaken within 5 years (2011-2015). The study adopted the use of descriptive survey using both qualitative and quantitative methods for a totalsample size of 132. Purporsive and simple random simpling was used for this purpose. Primary and Secondary datawere collected and thene analyzed using SPSS version 16.00. The study found that ICT has been introduced and usedabout 5 years and above. The study found that ICT impact firstly on financial sustainability and profitability (65.8%),secondly on financial efficiency and productivity (23.7) and finally on portfolio quality (5.3%). ICT utilization havea high influence to the RIM Ltd.’s financial performance compared to the previous situation.The correlation results imply that ICT usage has a positive impact on financial sustainability and profitability as theymove in the same direction (R=0.502). The strength of the impact was found to be low due to the low investments inICT among microfinance institutions.

scholarly journals The influence of corporate governance on firm value: a case study in Indonesian manufacturing industries

2021 ◽  
Vol 14 (1) ◽  
pp. 15-26
Author(s):  
Werner Ria Murhadi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Audit Committee ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Manufacturing Industries ◽  
Research Approach

This study aims to determine the effect of corporate governance on financial performance and financial performance on dividend policy, then examining the effect of financial performance and dividend policy on firm value. The research approach is quantitative with panel data type. The sample are companies listed in the manufacturing industries on the Indonesia Stock Exchange. This study found that independent commissioners' existence does not affect financial performance. The size of the board of commissioners, audit committee members, and the number of board meetings do not affect financial performance. The study also found that financial performance and free cash flow affect the company's dividend policy. Finally, the results show that financial performance affects firm value while dividend policy does not affect it. These results have theoretical implications for supporting agency theory. The independent commissioners will reduce conflict and thus improve the financial performance.

Corporate Governance and Financial Performance: The Case of Australia and Sri Lanka

2016 ◽  
Vol 7 (1) ◽  
pp. 1-12
Author(s):  
Puwanenthiren Pratheepkanth ◽  
Samanthala Hettihewa ◽  
Christopher Wright
Keyword(s):  
Corporate Governance ◽  
Sri Lanka ◽  
Financial Performance

scholarly journals Financial analysis and corporate governance of AA: A case study

2019 ◽  
Vol 16 (2) ◽  
pp. 19-24 ◽  
Author(s):  
Philip Law ◽  
Desmond Yuen
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Analysis ◽  
Operating Performance ◽  
Cash Flows ◽  
Ratio Analysis ◽  
Financial Leverage ◽  
Financial Reports ◽  
Good Corporate Governance

This paper evaluates AA’s financial performances by analyzing its financial reports throughout 2010 to 2012 using ratio analysis. Strengths and weaknesses are identified. Quantitative ratio analysis (liquidity measurement, profitability indicators, financial leverage/gearing, operating performance and investment valuation) indicates AA scores satisfactory among the five indicators, implying good corporate governance positively enhances financial performance. Positive cash flows reveal satisfactory liquidity positions. Results provide implications for companies to maintain better corporate governance in future.

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