The Impact of International Influence on Microbanks' Performance: A Global Survey

International Business Review, Forthcoming

Posted: 20 Dec 2010

See all articles by Roy Mersland

Roy Mersland

University of Agder

Trond Randøy

University of Agder - School of Management

R. Øystein Strøm

OsloMet - Oslo Metropolitan University

Abstract

Microbanks serve micro-enterprises and poor people with financial services. This study examines how various aspects of international influence affect microbanks’ financial and social performance. Grounded in agency theory and resource-based theory, we argue that there are multiple ways that the internationalization of microbanks might affect performance. Specifically, we argue that one can distinguish between four sources of such internationalization effects; international initiator, international directorship, international debt, and international affiliation/networks. This study utilizes data from 379 microbanks in 73 developing countries - assessed between 2001 and 2008. We find that the internationalization of microbanks to a large extend enhances social performance, but does not enhance financial performance.

Keywords: Corporate governance, Internationalization, Microbank, Microfinance, Performance

JEL Classification: F39, G15, G21

Suggested Citation

Mersland, Roy and Randøy, Trond and Strøm, Reidar Øystein, The Impact of International Influence on Microbanks' Performance: A Global Survey. International Business Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1711398

Roy Mersland

University of Agder ( email )

Serviceboks 422
N-4604 Kristiansand, VEST AGDER 4604
Norway

HOME PAGE: http://www.uia.no/microfinance

Trond Randøy (Contact Author)

University of Agder - School of Management ( email )

Adger Research Foundation
Serviceboks 422 Bygg H
N-4604 Kristiansand
Norway
47 3814 1027 (Phone)

Reidar Øystein Strøm

OsloMet - Oslo Metropolitan University ( email )

P.O. Box 4
Oslo, 0130
Norway
+47 97968500 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
482
PlumX Metrics