The moderating influence of financial literacy on the relationship between access to finance and firm growth in Ghana

By Samuel Adomako, A. Danso, John Ofori Damoah. 2016

236 citations recorded by the source corpus.

Abstract The literature on access to finance has confirmed a positive relationship between access to finance and firm growth. Yet the boundary conditions for such linkage are less examined in the context of developing economies. This study draws on resource-based view to introduce financial literacy as a moderator of the relationship between access to finance and firm growth. This theoretically derived research model is empirically tested using survey data from 201 small and medium-sized enterprises in Ghana. Our empirical findings suggest that financial literacy positively enhances the access to finance-firm growth relationship.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/17ce5f2b082eca28f293d536e71476f6478c0d04

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In Accounting

1. Hazrat Hassan
2. H. Ahmad
3. J. Abor
4. Qianwei Ying
5. M. Amidu
6. Jianmu Ye
7. K. Kulathunga
8. A. Khan

In Economics and Econometrics

1. H. Issahaku
2. J. Abor
3. M. Amidu
4. Jianmu Ye
5. K. Kulathunga

Citations in the corpus

• The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance (2019, background): “, financial) for acquiring useful resources, material, and means that can boost and enlighten the production processes and operational activities, which in turn can improve profitability [53,68].”
• Mobile Telephony, Financial Inclusion and Inclusive Growth (2018, background): “Turning to the link between financial inclusion and inclusive growth, from a sample of Ghanaian firms, Adomako et al. (2016) find that access to finance enhances firm growth. In a related study in India, Ghosh (2016) establishes a positive relationship between financial penetration and growth per ca”
• How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective (2019, background): “literacy and SMEs sustainable performance is consistent with peaking order theory, which posits that financial literacy improves SMEs’ sustainability by minimizing the information gap [18], thereby giving SMEs access to appropriate sources of finance.”