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.

ARNONE MASSIMO (2020). Financial literacy, value creation and firm performance. An investigation of Italian small and medium enterprises. INTERNATIONAL JOURNAL OF ENTREPRENEURSHIP AND SMALL BUSINESS [10.1504/IJESB.2022.10034839].

Financial literacy, value creation and firm performance. An investigation of Italian small and medium enterprises

ARNONE MASSIMO
2020-01-01

Abstract

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.
2020
ARNONE MASSIMO (2020). Financial literacy, value creation and firm performance. An investigation of Italian small and medium enterprises. INTERNATIONAL JOURNAL OF ENTREPRENEURSHIP AND SMALL BUSINESS [10.1504/IJESB.2022.10034839].
File in questo prodotto:
File Dimensione Formato  
ARNONE-MODINA-QUINTILIANI.pdf

Solo gestori archvio

Descrizione: Articolo principale
Tipologia: Post-print
Dimensione 287.25 kB
Formato Adobe PDF
287.25 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/509743
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact