---
_id: '4398'
abstract:
- lang: eng
  text: Employing a Hausman–Taylor instrument variable (HT–IV) estimator to data from
    558 microfinance institutions (MFIs) in 80 developing countries for the period
    from 2002 to 2007, this paper provides empirical evidence for a positive impact
    of a country's external governance quality and outcome on local microbanks' economic
    success in terms of profitability and sustainability. Evidence as well suggests
    a negative relationship between external governance and the microbanks' social
    success measured by the depth of outreach. In this context, our analysis reveals
    that a country's political stability, governance effectiveness, regulatory quality
    and rule of law are significant key elements of external governance affecting
    the MFIs' functional performance. Moreover, results from sensitivity analyses
    indicate that the relationship between external governance quality and microfinance
    functional performance significantly depends on the microbanks' business concepts,
    their lending methodologies and sources of funding.
alternative_title:
- 'The impact of external governance quality on the economic and social success of
  microfinance institutions '
author:
- first_name: André
  full_name: Uhde, André
  id: '36049'
  last_name: Uhde
  orcid: https://orcid.org/0000-0002-8058-8857
- first_name: Oliver
  full_name: Müller, Oliver
  last_name: Müller
citation:
  ama: Uhde A, Müller O. External governance outcome and microfinance success. <i>
    International Journal of Monetary Economics and Finance </i>. 2013;6(2/3):116-149.
    doi:<a href="https://doi.org/10.1504/IJMEF.2013.056394">https://doi.org/10.1504/IJMEF.2013.056394</a>
  apa: Uhde, A., &#38; Müller, O. (2013). External governance outcome and microfinance
    success. <i> International Journal of Monetary Economics and Finance </i>, <i>6</i>(2/3),
    116–149. <a href="https://doi.org/10.1504/IJMEF.2013.056394">https://doi.org/10.1504/IJMEF.2013.056394</a>
  bibtex: '@article{Uhde_Müller_2013, title={External governance outcome and microfinance
    success}, volume={6}, DOI={<a href="https://doi.org/10.1504/IJMEF.2013.056394">https://doi.org/10.1504/IJMEF.2013.056394</a>},
    number={2/3}, journal={ International Journal of Monetary Economics and Finance
    }, author={Uhde, André and Müller, Oliver}, year={2013}, pages={116–149} }'
  chicago: 'Uhde, André, and Oliver Müller. “External Governance Outcome and Microfinance
    Success.” <i> International Journal of Monetary Economics and Finance </i> 6,
    no. 2/3 (2013): 116–49. <a href="https://doi.org/10.1504/IJMEF.2013.056394">https://doi.org/10.1504/IJMEF.2013.056394</a>.'
  ieee: 'A. Uhde and O. Müller, “External governance outcome and microfinance success,”
    <i> International Journal of Monetary Economics and Finance </i>, vol. 6, no.
    2/3, pp. 116–149, 2013, doi: <a href="https://doi.org/10.1504/IJMEF.2013.056394">https://doi.org/10.1504/IJMEF.2013.056394</a>.'
  mla: Uhde, André, and Oliver Müller. “External Governance Outcome and Microfinance
    Success.” <i> International Journal of Monetary Economics and Finance </i>, vol.
    6, no. 2/3, 2013, pp. 116–49, doi:<a href="https://doi.org/10.1504/IJMEF.2013.056394">https://doi.org/10.1504/IJMEF.2013.056394</a>.
  short: A. Uhde, O. Müller,  International Journal of Monetary Economics and Finance  6
    (2013) 116–149.
date_created: 2018-09-14T11:53:25Z
date_updated: 2023-01-10T09:38:58Z
department:
- _id: '186'
- _id: '188'
doi: https://doi.org/10.1504/IJMEF.2013.056394
intvolume: '         6'
issue: 2/3
jel:
- G21
- G28
keyword:
- microfinance
- external governance
- economic success
- social success
- developing countries
- profitability
- sustainability
- microbanks
- outreach
- political stability
- governance effectiveness
- regulatory quality
- rule of law
- governance quality
- lending methodologies
- funding sources
language:
- iso: eng
page: 116-149
publication: ' International Journal of Monetary Economics and Finance '
publication_identifier:
  eissn:
  - 1752-0487
publication_status: published
status: public
title: External governance outcome and microfinance success
type: journal_article
user_id: '21810'
volume: 6
year: '2013'
...