Female participation and financial performance of microfinance institutions: evidence from transition economies

We find that female board members and female clients positively contribute to the financial performance of MFIs. The literature motivates these outcomes by womens’ better organizational and monitoring techniques, and more responsible use of loans, respectively. Instead, our analysis shows that female managers and loan officers may regress financial performance to some extent, possibly because they face cultural limitations and safety obstacles, resulting in less persuasive and effective than men, especially in the process of collecting arrears payments