The characteristics of the board and financial performance of microfinance institutions (MFIs): The case of Cameroon

Abstract

This paper has for main objective to verify the connection between the The characteristics of the board and financial performance of MFIs in Cameroon. To do this, we evaluated the characteristics of the board of directors by : the presence of independent directors, the size of the board and the competence of the directors. Similarly we have apprehended MFIs financial performance by return on assets (ROA), operational self-sufficiency, the quality of the credit portfolio and productivity. The sample consists of 108 Cameroonian MFIs and we used the linear regression analysis. The results indicate that only the competence of directors improve financial performance. As against the presence of independent directors and board size are irrelevant.