Article2019

Entrepreneurial participation and performance: the role of financial literacy

91 citations0/0 files storedManagement Decision

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Literacy and Behavior Entrepreneurship Studies and Influences Financial Literacy, Pension, Retirement Analysis

Abstract

Purpose The purpose of this paper is to examine the relationship between financial literacy and entrepreneurial activities, and the moderating effects of industrial regulation in the relationship between financial literacy and entrepreneurship. Design/methodology/approach In this study, the role of financial literacy on entrepreneurial participation and performance is investigated through multi-sourced data from the Chinese Family Panel Studies with manually merged provincial and industrial data from 2014. Four hypotheses are tested based on Probit and Tobit models. Moreover, instrumental variable method and principal component analysis are applied to provide robustness checks. Findings The empirical results demonstrate that financial literacy has significantly positive effects on entrepreneurial participation, as well as on entrepreneurial performance. In addition, industrial regulation positively moderates the effects of financial literacy on entrepreneurial participation and performance, which indicates that financial literacy plays a more important role in promoting entrepreneurship in tightly regulated industries. Originality/value This study proposes and tests the effects of financial literacy on entrepreneurial activities, which fills an important gap in the literature. The results in this paper provide evidence that financial literacy has positive impacts in both the entry and operation stages of entrepreneurship. This evidence provides theoretical foundations for policy making in popularizing financial knowledge and supporting entrepreneurial activities. Moreover, this research further reveals the effects of industrial regulation in the context of China, suggesting that the government should be more effective in promoting administrative decentralization and reducing unnecessary interventions.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 91 citations exist upstream.

References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1997Dynamic capabilities and strategic management 1984A resource‐based view of the firm 2000The Regulation of Entry 1989An Estimated Model of Entrepreneurial Choice under Liquidity Constraints 2006Household Finance 2007Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

Cited by

2022Can financial capability improve entrepreneurial performance? Evidence from rural China 2022The Impact of Financial Literacy on Entrepreneurial Intention: The Mediating Role of Saving Behavior 2023Strengthening Formal Credit Access and Performance through Financial Literacy and Credit Terms in Micro, Small and Medium Businesses 2023The impact of financial literacy and financial behavior in entrepreneurial motivation – evidence from Indonesia 2022Financial literacy and digital product use for financial inclusion: A GETU model to develop financial literacy

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.