The objective of this paper is to analyse the corporate governance practices in Senegalese microfinance institutions (MFIs), in order to judge their effectiveness. The question is whether in this microfinance setting, governance structures are well implemented and function as well as in conventional firms. In the MFI's literature and specifically in an African environment, there are not too much studies assessing the state of corporate governance practices. This paper aims to provide insights, using the Senegalese MFIs’ setting. To reach this end, a survey is conducted over a sample of 99 MFIs. The exploratory factor analysis is used to measure our constructs, from a sand of items collected through a questionnaire. Once the constructs are built, a factorization is performed, and the Cronbach's Alpha (α) allows us the judge the effectiveness of the axes obtained. The results indicate that: - Board of directors (BODs) in Senegalese MFIs are characterized by a plurality of roles. These include a disciplinary, as well as an advisory role. - The composition of BODs in Senegalese MFIs and their mode of operation meet the optimality requirements. - Finally, the BODs in Senegalese MFIs display traits of competency, through two dimensions which are the general competence and the knowledge of the external environment. The practical implications of our results is that Senegalese MFIs have well-functioning BODs. Then being MFIs does not prevent adherence to the best corporate governance practices. The existence of well-functioning BODs should translate into improved financial and social performances.
| Published in | European Business & Management (Volume 7, Issue 3) |
| DOI | 10.11648/j.ebm.20210703.12 |
| Page(s) | 61-71 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Governance, Microfinance Institutions, Best Practices, Senegal
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APA Style
Mamadou Fadel Diallo, Jean-Pierre Gueyie, Mahmoudou Bocar Sall. (2021). Corporate Governance Practices in Senegalese Microfinance Institutions. European Business & Management, 7(3), 61-71. https://doi.org/10.11648/j.ebm.20210703.12
ACS Style
Mamadou Fadel Diallo; Jean-Pierre Gueyie; Mahmoudou Bocar Sall. Corporate Governance Practices in Senegalese Microfinance Institutions. Eur. Bus. Manag. 2021, 7(3), 61-71. doi: 10.11648/j.ebm.20210703.12
AMA Style
Mamadou Fadel Diallo, Jean-Pierre Gueyie, Mahmoudou Bocar Sall. Corporate Governance Practices in Senegalese Microfinance Institutions. Eur Bus Manag. 2021;7(3):61-71. doi: 10.11648/j.ebm.20210703.12
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Download@article{10.11648/j.ebm.20210703.12,
author = {Mamadou Fadel Diallo and Jean-Pierre Gueyie and Mahmoudou Bocar Sall},
title = {Corporate Governance Practices in Senegalese Microfinance Institutions},
journal = {European Business & Management},
volume = {7},
number = {3},
pages = {61-71},
doi = {10.11648/j.ebm.20210703.12},
url = {https://doi.org/10.11648/j.ebm.20210703.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20210703.12},
abstract = {The objective of this paper is to analyse the corporate governance practices in Senegalese microfinance institutions (MFIs), in order to judge their effectiveness. The question is whether in this microfinance setting, governance structures are well implemented and function as well as in conventional firms. In the MFI's literature and specifically in an African environment, there are not too much studies assessing the state of corporate governance practices. This paper aims to provide insights, using the Senegalese MFIs’ setting. To reach this end, a survey is conducted over a sample of 99 MFIs. The exploratory factor analysis is used to measure our constructs, from a sand of items collected through a questionnaire. Once the constructs are built, a factorization is performed, and the Cronbach's Alpha (α) allows us the judge the effectiveness of the axes obtained. The results indicate that: - Board of directors (BODs) in Senegalese MFIs are characterized by a plurality of roles. These include a disciplinary, as well as an advisory role. - The composition of BODs in Senegalese MFIs and their mode of operation meet the optimality requirements. - Finally, the BODs in Senegalese MFIs display traits of competency, through two dimensions which are the general competence and the knowledge of the external environment. The practical implications of our results is that Senegalese MFIs have well-functioning BODs. Then being MFIs does not prevent adherence to the best corporate governance practices. The existence of well-functioning BODs should translate into improved financial and social performances.},
year = {2021}
}
TY - JOUR T1 - Corporate Governance Practices in Senegalese Microfinance Institutions AU - Mamadou Fadel Diallo AU - Jean-Pierre Gueyie AU - Mahmoudou Bocar Sall Y1 - 2021/06/09 PY - 2021 N1 - https://doi.org/10.11648/j.ebm.20210703.12 DO - 10.11648/j.ebm.20210703.12 T2 - European Business & Management JF - European Business & Management JO - European Business & Management SP - 61 EP - 71 PB - Science Publishing Group SN - 2575-5811 UR - https://doi.org/10.11648/j.ebm.20210703.12 AB - The objective of this paper is to analyse the corporate governance practices in Senegalese microfinance institutions (MFIs), in order to judge their effectiveness. The question is whether in this microfinance setting, governance structures are well implemented and function as well as in conventional firms. In the MFI's literature and specifically in an African environment, there are not too much studies assessing the state of corporate governance practices. This paper aims to provide insights, using the Senegalese MFIs’ setting. To reach this end, a survey is conducted over a sample of 99 MFIs. The exploratory factor analysis is used to measure our constructs, from a sand of items collected through a questionnaire. Once the constructs are built, a factorization is performed, and the Cronbach's Alpha (α) allows us the judge the effectiveness of the axes obtained. The results indicate that: - Board of directors (BODs) in Senegalese MFIs are characterized by a plurality of roles. These include a disciplinary, as well as an advisory role. - The composition of BODs in Senegalese MFIs and their mode of operation meet the optimality requirements. - Finally, the BODs in Senegalese MFIs display traits of competency, through two dimensions which are the general competence and the knowledge of the external environment. The practical implications of our results is that Senegalese MFIs have well-functioning BODs. Then being MFIs does not prevent adherence to the best corporate governance practices. The existence of well-functioning BODs should translate into improved financial and social performances. VL - 7 IS - 3 ER -
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