Financial Literacy and Firm performance The moderating role of financial capital availability and resource flexibility.

Date

2014

Advisors

Journal Title

Journal ISSN

ISSN

2305-2600

DOI

Volume Title

Publisher

International Journal of Management & Organizational Studies

Type

Article

Peer reviewed

Yes

Abstract

Financial literacy, financial capital availability and resource flexibility are typically modelled as separate antecedents of firm performance. However, the boundary conditions for such models are less examined in a developing country context where financial literacy has been argued to be weak. Accordingly, drawing on RBV, we examined the performance implications of financial capital availability and resource flexibility on the financial literacy-firm performance relationship of entrepreneurial firms operating in a less developed market setting. Using a survey-based approach and employing OLS, we examined 298 entrepreneurial firms operating Ghana, a sub-Saharan African country. Our findings indicate that financial literacy improves firm performance and particularly so when resources are flexible and entrepreneurs are able to access finance with ease

Description

Keywords

Financial literacy, financial capital availability, resource flexibility, entrepreneurial firms, performance, Ghana

Citation

Adomako, S. and Danso, A., (2014) Financial Literacy and Firm performance: The moderating role of financial capital availability and resource flexibility. International Journal of Management & Organizational Studies, 3 (4).

Rights

Research Institute

Finance and Banking Research Group (FiBRe)