How to Cite:
Tiona Wamba Joseph Herman, Ekondo A Ngam François, "Corporate Governance Mechanisms and Financial Performance of Microfinance Institutions: A Multicase Analysis" International Journal of Humanities Science Innovations and Management Studies, Vol. 2, No. 6, pp. 1-11, 2025.

Abstract:
Against a backdrop of structural tensions in the African financial sector, this study examines the governance mechanisms implemented in twelve Cameroonian microfinance institutions (MFIs) and their impact on financial performance. Based on a qualitative abductive approach, the investigation draws on a composite theoretical framework that combines agency theory (Jensen & Meckling, 1976), corporate governance (Charreaux, 1997), and the neo-institutionalist perspective (North, 1990). The methodological approach is based on 12 case-studies enriched by semi-structured interviews, a regulatory document analysis (COBAC standards), and a triangulated analysis of financial statements. Thematic content analysis assisted by NVivo allows us to identify structuring empirical categories (role of the founder, formality/informality of bodies, dynamics of control bodies). The results reveal that governance is highly centralized around the founders, control bodies with little autonomy, and incomplete application of regulatory standards. This configuration produces organisational weaknesses, which translate into a deterioration in performance indicators (ROE, PAR30, intermediation margin). Governance mechanisms appear to be weakly institutionalized, and their coordination with external regulation remains limited. At the managerial level, the study proposes effectively strengthening audit committees, redefining the role of the board of directors, and gradually professionalising management practices. It also recommends proactive supervision by regulators to reduce systemic risks in a sector exposed to increasing disintermediation. These findings contribute to a more contextualized understanding of financial governance in African MFIs, while laying the foundations for a dialogue between the regulatory framework and informal practices.

Keywords: Corporate Governance, Financial Performance, Microfinance Institutions, Case Study, Category of MFIs.

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