Abstract:
This paper intended to examine the roles played by female managers in the capital structure on microfinance institution (MFIs) by involving limited microfinance institutions found in Tanzania. The study attempt to assess the roles of female managers on the capital structure of the MFIs to see how female managers affect the capital structure of the firm this was done for the purpose of increasing the prospects for economic and social development.
The study was specifically intended to address the relationship between female managers and capital equity also to address the relationship between the female managers and borrowing amount of MFIs and to assess the relationship between female managers and deposit amount of MFIs. The study was carried out in Tanzania by obtaining information from five different institutions where by the sample was selected randomly selected for the study, the study research design adopted the secondary data collection method during collecting data and the data collected ware analyzed on the panel data analysis through the stata program.
Using data of five companies from Tanzania over a period of 2009-2019 we find different impact of the female mangers in capital structure decision of MFIs where by splitting the leverage in to borrowings and deposits, it has been discovers that female managers are highly associated with the deposits. This support the fact that there is a matching traits hypothesis between women where by the female managers have the great chance to attract the female client depositors. Since there is the effect of matching traits therefore we advise the cliental-effect capital structure in microfinance institutions.
