Work

Farmers' Financial Literacy—Scale Development and Linkages to Accounting Practices and Financial Outcomes

Year: 2024

Type: article

Abstract: ABSTRACT This study investigates the financial literacy (FL) of Swedish farmers, its linkages to farmer characteristics, management accounting practices and farm outcomes by surveying Swedish Farm Accountancy Data Network farmers. Using item response theory, we expand the existing FL measurement specifically to the farming context, assess measurement items and compare shorter and longer scales of FL. Our findings indicate high levels of FL among respondents. FL is positively associated with more extensive management accounting practices, greater farm profitability and lower cost of debt, independent of other farmer characteristics, including education, numeracy, need for cognition, and money vigilance. The findings suggest the relevance of FL as a farmer characteristic for both practices and outcomes, even when included through its shortest and more established measurement scale.

Source: Agribusiness

DOI: 10.1002/agr.21986

Authors: Uliana Gottlieb, Helena Hansson

Institution: Swedish University of Agricultural Sciences

Language: English

Topic: Financial Literacy and Behavior

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Zero hunger

Open Access status: hybrid

Estimated APC paid: $3,620