Board Gender Diversity and Technical Efficiency of Microfinance Orgaizations

As a result of numerous corporate scandals as a result of weak governance mechanisms, gender diversity has become the most intensely debated and scrutinized corporate governance aspect. This study examined the impact of board gender diversity on the technical efficiency of microfinance organizations. Using a sample of microfinance organizations, we found presence of female directors on boards had a negative effect on technical efficiency. We also deal with the question of whether this relationship varies by the profit status of microfinance organizations. Our results show that the board gender diversity has a significantly negative impact only on the technical efficiency of non-profit microfinance organizations.