Title: Board diversity and performance of microfinance institutions: new insight from Ghana

Authors: Ebenezer Agyemang Badu

Addresses: Department of Agricultural Economics and Extension Education, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Asante – Mampong, Ghana

Abstract: The purpose of this paper is to examine the influence of board diversity on the financial and social performance of Microfinance Institutions (MFIs) in Ghana. This paper uses a random effect panel data econometric regression of 335 firm-year observations from 2016 to 2020. The paper reports that the financial performance of Ghanaian MFIs is associated positively with industry experience board members and directors' educational level. However, board gender diversity contributes positively to social performance. The paper further finds that the impact of gender diversity, board industry experience of directors and performance varies when board members are differentiated into executive and non-executive members. The author's evidence has important implications for MFIs to appoint female, and industry experience directors to boost social and financial performance.

Keywords: board diversity; social performance; financial performance; MFIs; industry experience; gender diversity; educational level; random effect; Ghana.

DOI: 10.1504/EMJM.2022.122011

EuroMed Journal of Management, 2022 Vol.4 No.2, pp.148 - 166

Received: 27 Sep 2021
Accepted: 07 Dec 2021

Published online: 07 Apr 2022 *

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