Research On The Influence Mechanism Of Financial Literacy On Family Farm Entrepreneurial Performance

Family farms play an important role in the process of industrial prosperity and the promotion of rural revitalization.However,the difficulty of financing caused by demand-based credit rationing has become a key factor restricting the development of family farms.It is of great significance to explore the role mechanism of financial literacy in alleviating the financing dilemma caused by demand-based credit rationing,enhancing the availability of formal credit resources,and improving the entrepreneurial performance of family farms.Therefore,this study is based on the survey data of 408 family farms in Fujian Province,based on the information asymmetry theory and credit rationing theory.A total of 34 indicators in 6 dimensions including financial knowledge,financial ability,financial awareness,formal credit availability,entrepreneurial performance and a priori knowledge were selected,and a research model of the internal relationship mechanism between financial literacy and family farm entrepreneurial performance was constructed.Using multiple linear regression,causal step method and hierarchical regression analysis method to clarify the internal mechanism of the impact of financial literacy on family farm entrepreneurial performance,and using structural equation model and Bootstrap intermediary test method to test the robustness of the model regressionresults.The results of this study are as follows:(1)In the relationship between the three dimensions of financial literacy and the entrepreneurial performance of family farms,financial knowledge and financial capabilities both contribute to the entrepreneurial performance of family farms,and the financial consciousness has no significant effect on the performance of family farm entrepreneurship.(2)In the relationship between the three dimensions of financial literacy and the availability of formal credit,both financial knowledge and financial capabilities can significantly improve the availability of formal credit on family farms,while financial awareness has no significant effect on the availability of regular credit on family farms.(3)The availability of formal credit has a clear promotion effect on the entrepreneurial performance of family farms.(4)The availability of formal credit has a full intermediary role in the impact of financial knowledge and financial capabilities on the entrepreneurial performance of family farms,but the intermediary role in the impact of financial awareness on the entrepreneurial performance of family farms is not significant.(5)Transcendental knowledge has a positive regulating effect on the impact of the availability of formal credit on the entrepreneurial performance of family farms.(6)Among the control variables,age,education level,working years,farm establishment years,and family farm management scale all have significant effects onfamily farm entrepreneurial performance.Combining the above conclusions,this paper proposes targeted ways to improve financial literacy and the availability of formal credit from three perspectives:government agencies,financial institutions,and family farms themselves.With a view to alleviating the financing dilemma caused by the demand-based credit rationing of family farms and promoting the improvement of their entrepreneurial performance.