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Evaluation of the Financial Literacy of the Managers of the Private sector Companies

    Authors

    1 Ph.D student, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran

    2 Associate Professor, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran (Corresponding Author)

    3 Assistant Professor, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran

,

Document Type : Research Paper

Abstract

Purpose:­ Measurement of financial literacy of various classes of society has been considered in many internal and foreign studies, but the evaluation of the financial literacy of the companies' managers has not been noticed especially in the national level. So, the present study was designed and conducted with the aim of evaluation of the financial literacy of the companies' managers and identifying the factors effective on it.
Method: In the qualitative stage of the study, the components of managers' financial literacy have been identified using phenomenological method and after being verified and weighted, the managers' financial literacy questionnaire was codified and approved by the experts. Then, in the quantitative stage of the research, using cluster sampling method, the questionnaires were distributed among 229 managing directors and members of the board of directors of the selected companies and the collected data was analyzed using appropriate statistical techniques.
Results: The findings of the qualitative section indicates that the components of the managers' specialized financial literacy include analysis and identification of the financial statements, familiarity with the rules of insurance, labor , taxation, banking, cheque , money laundering, export and import and capital market. The results of testing hypotheses in the quantitative section also indicate inefficiency of managers' financial literacy in the general and private financial literacy domains. Some factors including educations, management record, the size of the company and passing financial courses may influence the managers' financial literacy.
Conclusion: The results showed that the managers lack sufficient financial literacy especially in the specialized domains and they are required to appropriately increase their financial skills in the specialized domain.
Contribution: The present study has presented an appropriate instrument for evaluation of the managers' financial literacy with a qualitative phenomenological approach for the first time in Iran and this may be a starting point for performing new studies in this domain.
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Keywords

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Financial Accounting Knowledge
Volume 8, Issue 2 - Serial Number 29
September 2021
Pages 195-219
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