Wale, L.E., University of South Africa, South Africa
This research investigated the effect of one governance dimension, board structure on the sustainability and outreach performance of Ethiopian MFIs. A panel data of 13 MFIs for 6 years (2003-2008) is used for the study. No study of such type is conducted in the past for the Ethiopian environment. The results indicate an experienced manager, a larger board size and educated board members all help to increase sustainability with board education having the largest effect. Manager experience and board size also have a negative effect on depth of outreach (i.e. less lending to women). Board independence has no visible effect on either sustainability or outreach. Surprisingly, no governance variable explains breath of outreach. © 2015, Virtus Interpress. All rights reserved.