Governance and performance of MFIs : the Cameroon governance case

Djoutsa Wamba, Léopold (FSEG, University of Dschang, Cameroon) ; Bengono, Isidore Bimeme (IDRAC Business School, Lyon, France) ; Sahut, Jean-Michel (School of Management Fribourg, HES-SO // University of Applied Sciences Western Switzerland ; IDRAC Business School, Lyon, France) ; Teulon, Frédéric (IPAG Business School Paris, France)

The main challenge of microfinance institutions and social economy firms remains their survival, and to meet this challenge, MFIs need to be compet-itive. The poor performance of MFIs is usually attributed to their decision-making and operational processes. The governance of MFIs is therefore identified as one of their main risks. Despite this, governance is still little explored in these organiza-tions and empirical studies find a weak relationship between classical governance mechanisms and MFI performance, especially for the MFIs situated in Africa (Thrikawala et al. in Asian J Financ Account 5(1):160–182, 2013a). In this study, we examine whether the effect of governance mechanisms on the performance of MFIs differs according to their legal status in the Cameroonian context. On the one hand, our empirical results show that there is a significant relationship between some specific governance mechanisms and MFIs’ performance. On the other hand, adjusting the governance mechanisms according to the MFIs’ legal status improves their efficiency. The analysis of the impact of the governance mechanisms on the performance of MFIs requires not only an approach that is specific to this sector but also an approach that is adapted to their legal status. Moreover, from a managerial point of view, it would be desirable to adjust the governance mechanisms, depending on the legal status of the MFIs, to make them more efficient from the social as well as the financial standpoint.


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
HEG-FR
Subject(s):
Economie/gestion
Date:
2017
Pagination:
24 p.
Published in:
Journal of management & governance
Numeration (vol. no.):
To be published
DOI:
ISSN:
1385-3457
Appears in Collection:

Note: The status of this file is: public


 Record created 2017-09-11, last modified 2019-03-26

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)