6533b857fe1ef96bd12b4fcc
RESEARCH PRODUCT
Financial literacy, value creation and firm performance. An investigation of Italian small and medium enterprises
Massimo ArnoneAndrea QuintilianiMichele Modinasubject
Economics and EconometricsEntrepreneurshipfinancial educationValue creationsmall and medium-sized enterprisebusiness.industryvalue creationSMEsmall and medium-sized enterprisesAccountingSMEsEconomic Value Addedentrepreneurshipfirm performancefinancial literacyeconomic value added.economic value addedFinancial literacyfinancial literacy; financial education; small and medium-sized enterprises; SMEs; entrepreneurship; firm performance; value creation; economic value added.BusinessSmall and medium-sized enterprisesBusiness and International Managementdescription
This article aims to determine the influence of entrepreneurs’ financial literacy for the growth of SMEs’ value. The paper verifies the hypothesis that there is a significant relationship between financial literacy and value creation, as indicated by economic value added (EVA®). The study analyses 162 Italian SMEs operating in the textile and clothing sector. The analysis period is between 2011 and 2013. Regression analysis and correlation analysis have been applied to test the hypotheses. The results suggest a positive and significant relationship between financial literacy and the variables that drive the value creation. Greater financial literacy allows SMEs to optimise their capital structure and select the most profitable projects. This work is useful to stimulate debate on the role of financial education in mitigating the difficulties of small and medium entrepreneurs in achieving value creation goals and in enabling policy makers to identify gaps and design appropriate responses.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2023-01-01 |