We investigate if the CEO’s gender plays a role in microfinance institutions (MFIs) inclusion of poor families into a formal financial relation. Financial inclusion comprises inclusion of the poorest segments of borrowers (the intensive margin), and the number of borrowers (the extensive margin). The data set is a unique global panel of MFIs collected from MFI raters’ reports where about 25% of all MFIs have a female CEO. Using instrumental variables regressions, we find evidence the female CEOs have an impact upon the intensive margin (smaller average loans, more gender bias), but no evidence of greater inclusion on the extensive margin (credit client growth). The results fit theories of women being more benevolent and universalistic than men. We run robustness tests of our financial inclusion variables and other leadership categories.
Female Leaders and Financial Inclusion: Evidence from Microfinance Institutions Available to Purchase
We are grateful for comments on earlier drafts from participants at the IV. European Microfinance Research Conference, University of Geneva, June 1–3, 2015, and the 16th Workshop on Corporate Governance and Investment 2015, Alliance Manchester Business School, Manchester UK, December 10–11, 2015, and a staff seminar at the Business Economics Department, University of the Balearic Islands, Spain, in January 2016, and the 2nd Microfinance and Rural Finance Conference, Aberystwyth, Wales, July 5th, 2016 (Best paper award). This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-operating income sectors.
Strøm RØ, D’Espallier B, Mersland R (2023), "Female Leaders and Financial Inclusion: Evidence from Microfinance Institutions". Review of Corporate Finance, Vol. 3 No. 1-2 pp. 69–97, doi: https://doi.org/10.1561/114.00000036
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