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Some Features of Hungarian Financial Literacy in the Light of the Economic Behaviour of Small and Medium-sized Enterprises

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  • Győri, Ágnes
  • Czakó, Ágnes

Abstract

The study examines the financial management culture of the SME sector based on the results of a nationwide representative survey. The analysis focuses on the financial literacy and behaviour of entrepreneurs: the knowledge and use of different financial products, the planning of financial management, the late settlement of invoices and the substantiation of financial management decisions. The database of our research is based on the survey entitled “Financial Literacy in Hungary”, conducted by Corvinus University of Budapest in 2017. We examined the different financial literacy indicators by means of simple statistics including, in some cases, their changes over time. In the next step, by applying a multinomial logistic regression, we showed that the domestic SME sector can be segmented according to certain corporate demographic and other independent variables, as well as financial literacy indicators. Three groups can be distinguished: (1) traditional thrifty enterprises, (2) enterprises lacking resources and (3) smartly-financed enterprises.

Suggested Citation

  • Győri, Ágnes & Czakó, Ágnes, 2018. "Some Features of Hungarian Financial Literacy in the Light of the Economic Behaviour of Small and Medium-sized Enterprises," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(2), pages 235-253.
    • Handle: RePEc:pfq:journl:v:63:y:2018:i:2:p:235-253
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    File URL: https://unipub.lib.uni-corvinus.hu/8742/
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    References listed on IDEAS

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    1. Miriam Bruhn & Bilal Zia, 2013. "Stimulating managerial capital in emerging markets: the impact of business training for young entrepreneurs," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 5(2), pages 232-266, June.
    2. Béres, Dániel & Huzdik, Katalin, 2012. "Financial Literacy and Macro-economics," Public Finance Quarterly, Corvinus University of Budapest, vol. 57(3), pages 298-312.
    3. Adele Atkinson & Flore-Anne Messy, 2012. "Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study," OECD Working Papers on Finance, Insurance and Private Pensions 15, OECD Publishing.
    4. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
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    Cited by:

    1. Robert Toth & Richard Kasa & Csaba Lentner, 2023. "Validating the Financial Literacy Index of Hungarian SMEs during the COVID-19 Pandemic and the Russian–Ukrainian War," Risks, MDPI, vol. 11(4), pages 1-19, March.

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    More about this item

    Keywords

    small and medium-sized enterprises; financial literacy; financial behaviour;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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