The Impact of International Influence on Microbanks' Performance: A Global Survey

Roy Mersland, Trond Randøy*, Reidar Øystein Strøm

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Microbanks serve micro-enterprises and poor people with financial services. This study examines how various aspects of international influence affect microbanks' financial and social performance. Grounded in agency theory and resource-based theory, we argue that there are multiple ways that the internationalization of microbanks might affect performance. Specifically, we argue that one can distinguish between four sources of such internationalization effects; international initiator, international directorship, international debt, and international affiliation/networks. This study utilizes data from 379 microbanks in 73 developing countries - assessed between 2001 and 2008. We find that the internationalization of microbanks to a large extend enhances social performance, but does not enhance financial performance.

Original languageEnglish
JournalInternational Business Review
Volume20
Issue number2
Pages (from-to)163-176
Number of pages14
ISSN0969-5931
DOIs
Publication statusPublished - Apr 2011
Externally publishedYes

Keywords

  • Corporate governance
  • Internationalization
  • Microbank
  • Microfinance
  • Performance

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