Corporate Governance and its Attributes:An Exploratory Study of MFIs

Abstract

Effective Corporate governance are emerges as most imperative and challenging task for the microfinance institutions because without proper governance, the double agenda of the institutions i.e. financial viability and social upliment could not be achieved. Beside this, weak governance architecture results in poor internal control system, lack of accountability and sub optimal performance which ultimately hinder the sustainability of the microfinance business operations. Therefore, this study tries to explore the factors which are important for effective governance of the microfinance institutions for achieving the double boom-line objectives. By employing the exploratory factor analysis on 271 responses collected through primary survey, the study identified that 8 major factors i.e. board structures, disclosure and transparency, board administration, board participation, board independence, risk management, regulatory features and board effectiveness that factors covers the broader aspects of corporate governance that perceived by respondents are significantly contributed for governing and directing the microfinance institutions in achieving their dual mission.