Template-Type: ReDIF-Paper 1.0
Author-Name: Reidar Øystein Strøm
Author-Name-First: Reidar Øystein
Author-Name-Last: Strøm
Author-Workplace-Name: Oslo Metropolitan University
Author-Name: Bert D'Espallier
Author-Name-First: Bert
Author-Name-Last: D'Espallier
Author-Workplace-Name: Hogeschool-Universiteit Brussel (HUBrussel); Catholic University of Louvain (UCL) - Lessius University College
Author-Name: Roy Mersland
Author-Name-First: Roy
Author-Name-Last: Mersland
Author-Workplace-Name: University of Agder
Title: Female Leaders and Financial Inclusion. Evidence from Microfinance Institutions
Abstract: This research advances the hypothesis that female leaders (CEO, chair, and director) of a microfinance institution (MFI) give more priority to the poorest families in loan provision than male leaders. We differentiate between a depth and a width dimension of financial inclusion. The data set is a unique global panel of MFIs collected from MFI raters’ reports. Our sample is also unique in the sense that about one third of all MFIs have a female CEO. The problem of endogeneity for the female leader is resolved by running Heckman’s two-step endogenous dummy variable estimation with instrument for the female leader. We find evidence for greater depth financial inclusion (smaller average loan, more gender biased) with a female leader, but not for width financial inclusion (credit client growth). The female leaders exhibit greater altruism, greater competition avoidance, but not greater risk aversion than male peers.
Classification-JEL: G34, M12, M14
Creation-Date: 2016-02-24
File-URL: https://doi.org/10.2139/ssrn.2737287
File-Format: text/html
DOI: 10.2139/ssrn.2737287
Keywords: Female leadership, Financial access, Microfinance institutions, Cross-country panel data
Handle: RePEc:oml:wpaper:201601