Financial Performance, Corporate Governance and Microfinance Institutions Sustainability in Nigeria
Financial Performance, Corporate Governance and Microfinance Institutions Sustainability in Nigeria

Author: Collins Alobari

Publisher:

Published: 2019

Total Pages: 15

ISBN-13:

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This study examined the relationship between financial performance and Microfinance sustainability, with interest on the impact of corporate governance in improving or otherwise of financial performance of microfinance banks in Nigeria. This interest was provoked by the fact that notwithstanding the introduction of corporate governance in Nigeria, there are still cases of the folding up of many microfinance institutions. Therefore, the study sought answers to: what is the relationship between financial performance and microfinance sustainability? What is the impact of board size and composition on financial performance? And what is the impact of the composition of board committees on financial performance? Using quantitative empirical method on selected microfinance banks in the South East Nigeria, the study employed the Ordinary Least Square (OLS) analysis on secondary data collected from financial reports of the selected banks for a period of thirteen (13) years (2005-2017). The study used the board of directors as the proxy for corporate governance, with Board size and composition as independent variables and Profit after Tax as dependent variables. The result shows that the link between board size and profitability does not imply board size to increase profitability as number of shareholders has negative relationship with profit before tax. Rather, the result found a positive relationship between equity of MFIs and profit after tax, which means that the higher the equity of MFIs, the higher their profitability. Therefore, the study recommends that the MFIs should concentrate more on raising share capital as well as constituting efficient boards and committees for effective corporate governance that will result in the sustainability of the MFIs.

Financial Sustainability of Micro-Finance Institutions in Sub-Saharan Africa
Financial Sustainability of Micro-Finance Institutions in Sub-Saharan Africa

Author: Hanna Kattilakoski

Publisher: GRIN Verlag

Published: 2020-06-23

Total Pages: 6

ISBN-13: 3346187950

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Presentation slides from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 90, Cologne Business School Köln, language: English, abstract: What factors influence the financial sustainability of microfinance institutions in Sub-Saharan Africa?

Financial Performance of Microfinance Institutions in Ghana and Uganda
Financial Performance of Microfinance Institutions in Ghana and Uganda

Author: Johannes Flosbach

Publisher: LIT Verlag Münster

Published: 2015

Total Pages: 373

ISBN-13: 3643906005

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This book examines the determinants of financial performance of microfinance institutions (MFIs) in Ghana and Uganda, against the backdrop of the public and academic debate over the financial and social implications of microfinance. In the absence of a conceptual model, the study chooses an inductive research approach with the objective of defining and developing a conceptual model with the capacity to explain, quantify, and compare the performance of MFIs. The research is particularly relevant in the African context where microloan interest rates regularly exceed 100% per annum and where the microfinance industry is lacking behind its global peers in regard to financial and social performance. (Series: Contributions to the Africa Research / Beitrage zur Afrikaforschung - Vol. 59) [Subject: Economics, Finance, African Studies]

Microfinance Institutions
Microfinance Institutions

Author: R. Mersland

Publisher: Springer

Published: 2015-12-11

Total Pages: 329

ISBN-13: 113739966X

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Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.

Subsidy/Donation and Performance of Microfinance Institutions
Subsidy/Donation and Performance of Microfinance Institutions

Author: Emeka Steve Emengini

Publisher:

Published: 2020

Total Pages: 12

ISBN-13:

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Subsidies and Donations are veritable tools that are supposed to engender effective performance in Microfinance institutions. On the face value, subsidies seem to be very positive but they can be counterproductive when related to their effects on performance, efficiency and self-sustainability of the Microfinance institutions. This paper therefore focuses on the assessment and review of issues relating to Subsidy/Donation and their effect on Performance of Microfinance Institutions (MFIs) in Nigeria. The methodology adopted is descriptive in nature and secondary source of data were made use of. Our review revealed mix results on the empirical findings of effect of subsidies/donations on performance of Microfinance institutions. This review shows that Subsidies can disincentive workers and managers, thereby creating moral hazard problems (Corruption and Financial impropriety). However, when applied to effect low borrowing costs and Tax incentives/concessions, it affects performance positively. The review also shows that subsidies ought to be used only in the startup phases of the life cycle and to be withdrawn when the Microfinance institution improves. Overall, to achieve the double bottom lines of social and financial sustainability obligations, funding structure in Microfinance should de-emphasise subsidy dependence and encourage market based principles and commercialisation. For effective corporate governance, big Microfinance institutions at the status of Banks and big NGOs should be mandated to disclose their accounts to the public and not just mere annual returns to the Central bank of Nigeria (this may involve quoting them in Nigeria Stock Exchange).

Microfinance and the Corporate Governance Conundrum
Microfinance and the Corporate Governance Conundrum

Author: Umakanth Varottil

Publisher:

Published: 2014

Total Pages: 0

ISBN-13:

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Microfinance evolved as an instrument to reduce poverty and bring about sustainable development. As an alternative to traditional means of finance such as banking and insurance (which failed to meet the needs of poorer sections of society), microfinance was pioneered by self-help groups, non-governmental organizations and other non-profit institutions. However, with a view to building a scalable model that engenders overall sustainable development, the microfinance sector has witnessed the emergence of for-profit institutions that are structured along the lines of the modern business corporation. These microfinance companies adopt market-based mechanisms to raise capital that is employed in financing the poor and less-privileged. From a corporate governance perspective, microfinance companies and their boards of directors are faced with the classic dilemma. On the one hand, it is recognized that the principal goal of microfinance is to reduce poverty; to that extent the interests of borrowers (or customers) as principal stakeholders becomes paramount. On the other hand, a shareholder-centric approach operates as a major countervailing factor by compelling microfinance companies to generate profits to service investors and maintain stock price. The current discourse in corporate governance does not appear to satisfactorily address the predicament of boards of microfinance companies. This is due to the fact that investors and stock markets judge them against standards imposed by corporate governance norms and practices that are generally applicable in the corporate sector. This article argues that the employment of conventional concepts and doctrines in corporate governance to for-profit microfinance companies does not adequately address the issues specific to such companies. It calls for a paradigm-shift that necessitates examination of corporate governance in microfinance companies through an altogether different lens. After considering the available empirical evidence and analyzing qualitative data generated from case studies and field interviews, it seeks to develop separate parameters for measuring the correlation between corporate governance and performance of microfinance companies, such that the overarching goals of reducing poverty are not diluted.

Impact of Corporate Governance on Firms Financial Performance
Impact of Corporate Governance on Firms Financial Performance

Author: Dr. Francis Udeh

Publisher:

Published: 2017

Total Pages: 9

ISBN-13:

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This study evaluated the Impact of Corporate Governance on Firms Financial Performance in Nigeria Quoted Banks in order to determine the Banks Financial Performance before and after the introduction of Code of Corporate Governance in Nigeria. The main objective of this study is to evaluate Board Composition with a view to determining its impact on Firms Financial Performance. Board Composition was used as measure of Corporate Governance while Return on Capital Employed (ROCE), was used to operationalise Financial Performance. The study is anchored on Shareholders theory. The Population of this study comprised fifteen (15) banks whose shares are quoted on Nigeria Stock Exchange. Judgmental sampling technique was used to select seven (7) banks from the entire Population of the study (which makes up the sample size). Data were obtained from secondary source (published financial statements of the selected quoted banks) covering the periods of 2003-2014. The method of data analysis utilised was Ordinary Least Squares Regression Analysis. A model was formulated. The findings from this study showed that Board composition has a negative, though insignificant impacts on ROCE during the 2003-2008 period (p1) and during the 2009-2014 period (p2). In conclusion, the way in which corporate governance is organised differs among countries, depending on the economic, political and social contexts. We therefore recommend that the directors of board should adhere to CBN regulations and guidelines in bank management, with this, they can achieve their aim and shareholders confidence will be restored, on the board.