Corporate Governance (CG) significantly impacts the performance of Microfinance Institutions (MFIs), crucially supporting their dual social and financial objectives. Despite a global dearth of research on the direct effects of CG practices on MFIs efficiencies, this study seeks to address this gap. It investigates how a nation’s governance practices influence MFIs’ efficiencies worldwide, analyzing Financial Efficiency (FE), Social Efficiency (SE), and Overall Efficiency (OE) using Data Envelopment Analysis (DEA) and the Malmquist index. The research utilizes panel data from 382 MFIs across 62 countries spanning 2010 to 2018 sourced from www.mixmarket.org . A Corporate Governance Index, based on dimensions like Voice and Accountability, Political Stability, Government Effectiveness, Regulatory Quality, Control of Corruption, and Rule of Law has been constructed using data from the World Governance Indicators (WGI). The study employs a fixed-effect multiple regression model to investigate the impact of governance dimensions on MFIs efficiencies along control variables at country and firm level. Results highlight the positive impact of government effectiveness on FE of MFIs, emphasizing the critical role of regulatory frameworks and governance structures. External indicators of governance—GOVEFF, POLSTA, REGQUA, CONTCOR, as well as Overall CG Index have been found having significant positive impact on SE and OE. This study provides new insights into how country-specific governance frameworks influence MFIs performance globally, enhancing understanding of their operational effectiveness across diverse regulatory landscapes.