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Financial Literacy at the National Level and Organisational Performance: A Meta‐Analysis Through Accounting Lenses

Author

Listed:
  • Omid Barani
  • Abdullahi D. Ahmed
  • Mahesh Joshi

Abstract

Financial literacy is increasingly recognised as a cornerstone of organisational success, yet its full potential in driving performance remains underexplored. To address this critical gap, this study conducted a comprehensive meta‐analysis of 62 studies, encompassing 124,704 observations, to uncover the nuanced effects of financial literacy on organisational performance. Our findings reveal that financial literacy strongly has a positive effect on organisational performance. Beyond the main effect, subgroup analyses highlight how the influence of financial literacy varies across contexts, including financial literacy at the National Level (as measured using the financial literacy index derived from the Global Competitiveness Report 2017–2018) company sizes, performance types, and accounting‐based measures such as profitability, sale growth and return on assets (ROA). The findings suggest that the association between financial literacy and performance remains consistent across countries with both high and low levels of financial literacy. Furthermore, while financial literacy boosts profitability and ROA, its impact on sales growth is notably absent, suggesting its strongest effects are tied to metrics rooted in financial stability and efficiency. These results emphasise the transformative role of financial literacy in shaping performance outcomes and offer fresh insights into its strategic importance. By advancing the understanding of how financial literacy operates across diverse contexts, this study provides essential guidance for policymakers and business leaders striving to cultivate financially adept organisations and secure long‐term success. This study provides a valuable foundation for future research by showing how financial literacy impacts organisational performance in different contexts, helping guide future studies in various industries and settings.

Suggested Citation

  • Omid Barani & Abdullahi D. Ahmed & Mahesh Joshi, 2026. "Financial Literacy at the National Level and Organisational Performance: A Meta‐Analysis Through Accounting Lenses," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(2), pages 1166-1191, June.
    • Handle: RePEc:bla:acctfi:v:66:y:2026:i:2:p:1166-1191
    DOI: 10.1111/acfi.70162
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    References listed on IDEAS

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