A MAKING CORPORATE GOVERNANCE EFFECTIVE: Conceptualizing a multi-theoretical governance model in microfinance institutions

Abstract

This paper attempts to synthesize the empirical and theoretical literature on the mechanisms of corporate governance focusing on both internal and external governance mechanisms along with their dynamic interaction with performance of microfinance institutions. It analyses empirical literature on the link between such governance mechanisms as board of directors, ownership, regulation, and other relevant mechanisms in influencing institutional performance in microfinance. With the intention of narrowing theory–practice gap in governance studies, the paper conceptualizes on the approaches of applying multi-theoretical governance model in microfinance institutions.