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Role Of Managerial Competencies And Risk-Taking Behavior In Financial Service Outreach Of Microfinance Banks In Pakistan

Author

Listed:
  • Fozia Taj

    (COMSATS University, Abbottabad Campus)

  • Kashif Rashid

    (COMSATS University, Abbottabad Campus)

  • Yasir Bin Tariq

    (COMSATS University, Abbottabad Campus)

Abstract

This study aims to investigate the relationship between the managerial risktaking, managerial competencies and financial service outreach of microfinance banks in Pakistan.Primary data was collected from 36 branches of microfinance banks MFBs in nine cities.The unit of investigation is the branch manager and senior credit officer of each MFB branch.Descriptive statistics, correlation and regression, are used for data analysis.This study found a positive relationship between financial service outreach of MFBs and managerial competencies financial service outreach also has a positive relationship with the risktaking behavior of managers.There is a positive relationship between risktaking behavior and financial service outreach of banks.The risktaking behavior partially mediates the relationship between the managerial competencies and financial service outreach.The magnitude of the relationship between managerial competencies and outreach is significant, and its magnitude reduces when there is the mediation of managerial risktaking behavior between them.Thus, managerial competencies, along with risktaking behavior are the keys drivers of financial service outreach of MFBs.This study informs MFB’s top management and policymakers that competencies of managers and their calculated risktaking propensities determined outreach performance of the MFBs.

Suggested Citation

  • Fozia Taj & Kashif Rashid & Yasir Bin Tariq, 2019. "Role Of Managerial Competencies And Risk-Taking Behavior In Financial Service Outreach Of Microfinance Banks In Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 24-42.
    • Handle: RePEc:aib:ibtjbs:v:15:y:2019:i:2:p:24-42
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2019.152.3
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    References listed on IDEAS

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    Cited by:

    1. Ghazala Tunio & Zhang Lei & Nizamuddin Channa & Noor Ahmed, 2020. "Performance of Microfinance Providers in Sindh, Pakistan: A Study of Formal and Informal Microfinance Institutes," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(1), pages 151-170.
    2. Ghazala Tunio & Zhang Lei & Nizamuddin Channa & Noor Ahmed, 2020. "Performance of Microfinance Providers in Sindh, Pakistan: A Study of Formal and Informal Microfinance Institutes," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(1), pages 16-11.

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