--- _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. International Journal of Monetary Economics and Finance . 2013;6(2/3):116-149. doi:https://doi.org/10.1504/IJMEF.2013.056394 apa: Uhde, A., & Müller, O. (2013). External governance outcome and microfinance success. International Journal of Monetary Economics and Finance , 6(2/3), 116–149. https://doi.org/10.1504/IJMEF.2013.056394 bibtex: '@article{Uhde_Müller_2013, title={External governance outcome and microfinance success}, volume={6}, DOI={https://doi.org/10.1504/IJMEF.2013.056394}, 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.” International Journal of Monetary Economics and Finance 6, no. 2/3 (2013): 116–49. https://doi.org/10.1504/IJMEF.2013.056394.' ieee: 'A. Uhde and O. Müller, “External governance outcome and microfinance success,” International Journal of Monetary Economics and Finance , vol. 6, no. 2/3, pp. 116–149, 2013, doi: https://doi.org/10.1504/IJMEF.2013.056394.' mla: Uhde, André, and Oliver Müller. “External Governance Outcome and Microfinance Success.” International Journal of Monetary Economics and Finance , vol. 6, no. 2/3, 2013, pp. 116–49, doi:https://doi.org/10.1504/IJMEF.2013.056394. 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' ...