Abstract:
Purpose – the main objective of this study is to investigate a significantly the
empirical impact of the financial literacy on the sustainable business performance.
This paper also aims to theoretically and empirically assess a comprehensive FL and
sustainable business performance. the model incorporates FL that considered as
exogenous variables consist of Financial Knowledge, Financial Skills, Financial
Attitude and Financial Behavior and endogenous variable is Sustainable Business
Performance.
Design /Methodology- A structured questionnaire was issued to collect the data which
was collected from 459 owner managers from eastern province, Sri Lanka were
analyzed using a structural equation modeling. The owner managers provide data
reflecting the degree to which they work with FL to impact sustainable business
performance.
Finding – generally the all four variables: Financial Knowledge, Financial Skills,
Financial Attitude and Financial Behavior were statistically supported with the
Sustainable Business Performance in Sri Lankan context.
Implication – The owner-managers are provided with an approach to assess the
combined effects of FL on Sustainable Business Performance. Financial Knowledge
and Attitudes are identified as necessary foundation to reach Sustainable Business
Performance.
Originality / value – a comprehensive FL model proposed and empirically assessed.
the result of the study supports the proposition that FL practices are good business
practice to improve Sustainable Business Performance
