Does the Group Leader Matter? The Impact of Monitoring Activities and Social Ties of Group Leaders on the Repayment Performance of Group-based Lending in Eritrea

Authors: Hermes, Niels¹; Lensink, Robert²; Mehrteab, Habteab T.³

Source: African Development Review, Volume 18, Number 1, April/Avril 2006 , pp. 72-97(26)

Purchase options

The full text electronic article is available for purchase. You will be able to download the full text electronic article after payment.

$39.62 plus tax Refund Policy

More like this?

In this: publication
By this: publisher
In this Subject: Economics
By this author: Hermes, Niels ; Lensink, Robert ; Mehrteab, Habteab T.

Content Key:

- Free

- New

- Open Access

- Subscribed

- Free Trial

Abstract:

Abstract:

This paper analyses whether the effects of monitoring and social ties of the group leader and other group members on repayment performance of groups differ, using data from an extensive questionnaire held in Eritrea among participants of 102 groups. We hypothesize that the monitoring activities and social ties of the group leader have a stronger positive impact on the repayment performance of groups. The results show that social ties of the group leader do have a positive effect on repayment performance of groups, whereas this is not true for social ties of other group members. We do not find evidence for the hypothesis that monitoring activities of the group leader have a stronger positive impact on group repayment performance. All variables measuring monitoring activities, either of the group leader or the other group members, are found to be statistically insignificant.

Document Type: Research article

DOI: 10.1111/j.1467-8268.2006.00133.x

Affiliations: 1: Niels Hermes (corresponding author): Faculty of Management and Organization, University of Groningen, PO Box 800, 9700AV Groningen, The Netherlands.or 7082;, Tel: +31-50-363-4863, Fax: +31-50-363-7356, Email: C.L.M.Hermes@rug.nl 2: Robert Lensink: Faculty of Economics, University of Groningen, PO Box 800, 9700AV Groningen, The Netherlands and external credit fellow, Department of Economics, University of Nottingham, UK., Email: B.W.Lensink@rug.nl 3: Habteab T. Mehrteab: College of Business and Economics, University of Asmara, Eritrea. or habteab59@yahoo.co.uk., Email: Habteabt@econ.uoa.edu.er