Board gender diversity and financial stability: Evidence from microfinance institutions

The effects of board gender diversity (BGD) on financial stability institutions have long been an important topic, creating a rich strand literature that focuses extensively banks. Meanwhile, little is known about the implications BGD risk in microfinance (MFI). This study aims to fill this gap. Using data sample retrieved from MIX Market database spanning 2009–2018 period and random-effects estimator, we find proportion female directors positively associated with MFIs measured by Z-score. result robust when using alternative measures BGD, estimation techniques. In addition, document negative relationship between risk-taking behavior MFIs. Further, research favors critical mass theory rather than tokenism. Lastly, links monotonic instead non-monotonic manner.