Women on Board and its Impact on Performance: Evidence from Microfinance Sector

Q3 Business, Management and Accounting

Indian Journal of Corporate Governance Pub Date : 2017-06-01 DOI:10.1177/0974686217701465

R. Vishwakarma

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引用次数: 31

Abstract

Abstract The board of directors is the most imperative facet of corporate governance for any corporation as it is responsible for approving financial decisions, policy formulation as well as strategic decisions. Consequently, their composition is a solemn issue for the company at all times. Recent years have evidenced a steep amplify in the board diversity by enhancing the representation of women in corporate leadership. Diverse boards with individuals having different background perhaps tends to be more innovative and make better decisions. It could enhance the boards’ functioning, sharpen strength and bring a more diverse perspective. Meanwhile, the participation of women in decision-making is one of the most divergent factors which has been given a push in the form of law with enactment of The Company Act, 2013. Thus, this study mainly illustrates the relevance of women in microfinance and empirically examines the association between participation of women on board and in senior management with the performance of microfinance industry, using a sample of 50 Non-banking Financial Companies–Microfinance Institutions (NBFC–MFIs). It is evident that there is a positive and significant impact of women as board members with the financial performance and of senior management with social performance in context to Indian MFIs. Thus, it is suggested that MFIs should think about the femininity on board and in senior management to improve financial viability and social performance to achieve sustainable growth.

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董事会女性成员及其对业绩的影响:来自小额信贷行业的证据

董事会是公司治理中最重要的一个方面，因为董事会负责批准财务决策、政策制定以及战略决策。因此，他们的构成在任何时候都是公司严肃的问题。近年来，通过提高女性在企业领导层中的代表性，董事会的多样性急剧扩大。拥有不同背景的成员组成的多元化董事会可能更具有创新性，也能做出更好的决策。它可以增强董事会的功能，增强实力，带来更多元化的视角。同时，女性参与决策是最具分歧的因素之一，随着2013年《公司法》的颁布，这一因素以法律的形式得到了推动。因此，本研究主要说明了妇女在小额信贷中的相关性，并利用50家非银行金融公司-小额信贷机构(NBFC-MFIs)的样本，实证检验了妇女在董事会和高级管理层的参与与小额信贷行业绩效之间的关系。显然，妇女作为董事会成员对印度小额信贷机构的财务业绩和高级管理人员对社会业绩产生了积极和重大的影响。因此，建议小额信贷机构应考虑董事会和高级管理层的女性化，以提高财务可行性和社会绩效，以实现可持续增长。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Indian Journal of Corporate Governance Business, Management and Accounting-Business and International Management

CiteScore

2.00

自引率

0.00%

发文量

期刊介绍： Indian Journal of Corporate Governance is a bi-annual refereed journal that provides a forum for discussions and exchanging views on a wide range of corporate governance issues ranging from board practices, independent directors, whistle blower policies and shareholder activism on one hand to media’s role in corporate governance, corporate social responsibility and sustainability reporting on the other. It comprises of research articles, concept papers, case studies and reports providing a blend of theory and practices of corporate governance globally to cater to the interests of practitioners, academics, researchers and policy makers.