This study examines whether the agency cost component referred to as ‘residual loss’ differs between nonprofit and shareholder-owned microfinance organizations and whether such costs are further influenced by CEO power. We use operating expenses, asset utilization, liquidity and tangible...

Microfinance institutions need improved access to debt capital to cover a huge and increasing world demand for microfinance services. More experienced CEOs may be more aligned with the microfinance institution’s mission and they may have a better understanding of the business model of...

Microfinance institutions (MFIs) are typical examples of hybrid organizations, meaning organizations pursuing both a financial and social logic. This study examines the question of whether financial and social performance improves when an MFI’s chief executive officer (CEO) has a business...