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Capital structure and CEO tenure in microfinance institutions
Author(s) -
Pascal Ndaki Daudi,
Atle Beisland Leif,
Mersland Roy
Publication year - 2018
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2205
Subject(s) - microfinance , business , institution , debt , financial system , capital (architecture) , finance , economic growth , economics , political science , history , archaeology , law
There is a positive association between CEO tenure and the debt proportion of microfinance institutions. Microfinance institutions need improved access to debt capital to cover a huge and increasing world demand for microfinance services. More experienced CEOs may be more aligned with the microfinance institution's mission, and they may have a better understanding of the business model of microfinance. Moreover, capital providers may require a proven track record within the institution to supply funding.