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The effect of financial knowledge on firm performance: The role of financial risk attitude as moderation

Author

Listed:
  • Cicik Retno Wati

    (Brawijaya University)

  • Sumiati Sumiati

    (Brawijaya University)

  • Andarwati Andarwati

    (Brawijaya University)

Abstract

This research aims to know the effect of financial knowledge on firm performance; the role of financial behavior and access to finance as mediation and the role of financial risk attitude as moderation. The object of this research is the owner of small-medium enterprises, sector food and beverage in Malang. Data collection was carried out using a questionnaire of 150 respondents. Data analysis of this research uses partial least square (PLS). The finding indicates that financial knowledge has a positive and significant effect on firm performance; financial behavior mediates the relationship of financial knowledge dan firm performance; while access to finance doesn’t mediate the relationship of financial knowledge with firm performance. This research also found that financial risk attitude weakens the relationship of financial knowledge with financial behavior. Key Words:Financial Knowledge, Financial Behavior, Access to Finance, Firm Performance, Financial Risk Attitude

Suggested Citation

  • Cicik Retno Wati & Sumiati Sumiati & Andarwati Andarwati, 2021. "The effect of financial knowledge on firm performance: The role of financial risk attitude as moderation," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(8), pages 236-249, December.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:8:p:236-249
    DOI: 10.20525/ijrbs.v10i8.1450
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    References listed on IDEAS

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    1. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    2. Kazuhisa Takemura, 2014. "Behavioral Decision Theory," Springer Books, Springer, edition 127, number 978-4-431-54580-4, April.
    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.
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    Cited by:

    1. Román Culebro-Martínez & Elena Moreno-García & Sergio Hernández-Mejía, 2024. "Financial Literacy of Entrepreneurs and Companies’ Performance," JRFM, MDPI, vol. 17(2), pages 1-14, February.

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