How Debt Literate and Financial Literacy Enhance Smes Performance: The Intervening Role of Financial Experience

Hadi Ismanto and Silviana Pebruary ()
Additional contact information
Hadi Ismanto: Universitas Islam Nahdlatul Ulama
Silviana Pebruary: Universitas Islam Nahdlatul Ulama

A chapter in Proceedings of the International Colloquium on Business and Economics (ICBE 2022), 2022, pp 281-295 from Springer

Abstract: Abstract This study aimed to analyze the effect of debt literate, financial literacy, and financial wellbeing on SMEs performance directly and through financial experience. This research was conducted by visiting SMEs managers in Central Java, Indonesia. The total sample was 475 respondents who had answered the questionnaire completely. The data was analyzed using the model structure to determine the direct and indirect effects. The results show that the financial literacy variable has a direct and indirect effect through financial experience on the SMEs performance. The debt literate variable does not have a direct effect on it, but it has an indirect effect through financial experience. In addition, financial well-being has no effect on the SMEs performance either directly or through moderation of financial experience. These empirical findings provide evidence that SMEs performance can be improved through financial literacy, debt literate, and financial experience. There needs to be an increase in financial literacy and financial experience for SMEs owners in order to be able to understand every financial phenomenon that can hamper SMEs performance improvement. Further research is required to investigate the predictability of debt and financial literacy in enhancing SME performance using a different sample from several settings.

Keywords: Debt Literate; Financial Literacy; Financial Wellbeing; Financial Experience; SME performance (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-066-4_25

Ordering information: This item can be ordered from
http://www.springer.com/9789464630664

DOI: 10.2991/978-94-6463-066-4_25

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().