IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v74y2025ics1544612324017331.html
   My bibliography  Save this article

The effect of financial literacy on agricultural entrepreneurship

Author

Listed:
  • Li, Bin
  • Zhang, Shoufu

Abstract

Using survey data from the China Household Finance Survey conducted in 2017, 2019, and 2021, this study examines the influence of financial literacy on farmers’ entrepreneurial behavior. Findings indicate that farmers with higher levels of financial literacy exhibit a greater likelihood of engaging in entrepreneurial activities. Additionally, farmland transfer acts as a partial mediating factor in the relationship between financial literacy and farmers’ entrepreneurial behavior.

Suggested Citation

  • Li, Bin & Zhang, Shoufu, 2025. "The effect of financial literacy on agricultural entrepreneurship," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612324017331
    DOI: 10.1016/j.frl.2024.106704
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324017331
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106704?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Luo, Yu & Peng, Yuchao & Zeng, Lianyun, 2021. "Digital financial capability and entrepreneurial performance," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 55-74.
    2. Kangogo, Daniel & Dentoni, Domenico & Bijman, Jos, 2021. "Adoption of climate‐smart agriculture among smallholder farmers: Does farmer entrepreneurship matter?," Land Use Policy, Elsevier, vol. 109(C).
    3. Kass-Hanna, Josephine & Lyons, Angela C. & Liu, Fan, 2022. "Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa," Emerging Markets Review, Elsevier, vol. 51(PA).
    4. Castellanza, Luca, 2022. "Discipline, abjection, and poverty alleviation through entrepreneurship: A constitutive perspective," Journal of Business Venturing, Elsevier, vol. 37(1).
    5. Hsu, Yuan-Lin & Chen, Hung-Ling & Huang, Po-Kai & Lin, Wan-Yu, 2021. "Does financial literacy mitigate gender differences in investment behavioral bias?," Finance Research Letters, Elsevier, vol. 41(C).
    6. Balasubramnian, Bhanu & Sargent, Carol Springer, 2020. "Impact of inflated perceptions of financial literacy on financial decision making," Journal of Economic Psychology, Elsevier, vol. 80(C).
    7. Yamori, Nobuyoshi & Ueyama, Hitoe, 2022. "Financial Literacy and Low Stock Market Participation of Japanese Households," Finance Research Letters, Elsevier, vol. 44(C).
    8. Aziz, Abdul & Naima, Umma, 2021. "Rethinking Digital Financial Inclusion: Evidence from Bangladesh," SocArXiv 7sr5c, Center for Open Science.
    9. Manyise, Timothy & Dentoni, Domenico, 2021. "Value chain partnerships and farmer entrepreneurship as balancing ecosystem services: Implications for agri-food systems resilience," Ecosystem Services, Elsevier, vol. 49(C).
    10. Unay-Gailhard, İlkay & Bojnec, Štefan, 2021. "Gender and the environmental concerns of young farmers: Do young women farmers make a difference on family farms?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 88, pages 71-82.
    11. Korkmaz, Aslihan Gizem & Yin, Zhichao & Yue, Pengpeng & Zhou, Haigang, 2021. "Does financial literacy alleviate risk attitude and risk behavior inconsistency?," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 293-310.
    12. Kaiser, Tim & Lusardi, Annamaria & Menkhoff, Lukas & Urban, Carly, 2022. "Financial education affects financial knowledge and downstream behaviors," Journal of Financial Economics, Elsevier, vol. 145(2), pages 255-272.
    13. Nguyen, Thi Hong Hanh & Ntim, Collins G. & Malagila, John K., 2020. "Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 71(C).
    14. repec:osf:socarx:7sr5c_v1 is not listed on IDEAS
    15. Hadjielias, Elias & Christofi, Michael & Tarba, Shlomo, 2021. "Knowledge hiding and knowledge sharing in small family farms: A stewardship view," Journal of Business Research, Elsevier, vol. 137(C), pages 279-292.
    16. Ni Qin & Dongmin Kong, 2021. "Human Capital and Entrepreneurship," Journal of Human Capital, University of Chicago Press, vol. 15(4), pages 513-553.
    17. Timothy Manyise & Domenico Dentoni, 2021. "Value chain partnerships and farmer entrepreneurship as balancing ecosystem services: Implications for agri-food systems resilience," Post-Print hal-03539208, HAL.
    18. Dongmin Kong & Ni Qin, 2021. "Does Environmental Regulation Shape Entrepreneurship?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(1), pages 169-196, September.
    19. Kong, Dongmin & Qin, Ni & Xiang, Junyi, 2021. "Minimum wage and entrepreneurship: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 320-336.
    20. Aziz, Abdul & Naima, Umma, 2021. "Rethinking digital financial inclusion: Evidence from Bangladesh," Technology in Society, Elsevier, vol. 64(C).
    21. Salisu, Afees A. & Vo, Xuan Vinh, 2020. "Predicting stock returns in the presence of COVID-19 pandemic: The role of health news," International Review of Financial Analysis, Elsevier, vol. 71(C).
    22. Kawamura, Tetsuya & Mori, Tomoharu & Motonishi, Taizo & Ogawa, Kazuhito, 2021. "Is Financial Literacy Dangerous? Financial Literacy, Behavioral Factors, and Financial Choices of Households," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    23. Ye, Xiang & Yue, Pengpeng, 2023. "Financial literacy and household energy efficiency: An analysis of credit market and supply chain," Finance Research Letters, Elsevier, vol. 52(C).
    24. Struckell, Elisabeth M. & Patel, Pankaj C. & Ojha, Divesh & Oghazi, Pejvak, 2022. "Financial literacy and self employment – The moderating effect of gender and race," Journal of Business Research, Elsevier, vol. 139(C), pages 639-653.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. He, Wei & Ling, Wenhao & Chen, Ziyi, 2025. "Financial literacy, old-age dependency ratio and household fraud risk," Finance Research Letters, Elsevier, vol. 75(C).
    2. Xiao, Yao, 2024. "Financial availability and rural household asset allocation," Finance Research Letters, Elsevier, vol. 62(PB).
    3. Aristei, David & Gallo, Manuela & Vannoni, Valeria, 2024. "Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability," Research in International Business and Finance, Elsevier, vol. 71(C).
    4. Jiao, Lei & Lu, Sijin & Chen, Changchun & Feng, Yu, 2024. "Social security, relative deprivation, digital capacity, and household financial investment behavior," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    5. Lee, Chien-Chiang & Tang, Manting & Lee, Chi-Chuan, 2023. "Reaping digital dividends: Digital inclusive finance and high-quality development of enterprises in China," Telecommunications Policy, Elsevier, vol. 47(2).
    6. Wang, Bing & Liu, Yanyan & Yang, Xiangyu, 2024. "Digital economy and urban entrepreneurial activity," Finance Research Letters, Elsevier, vol. 66(C).
    7. Wu, Jinshun & Wu, Luyao, 2023. "Impacts of digital inclusive finance on household entrepreneurship," Finance Research Letters, Elsevier, vol. 56(C).
    8. Jeswin Jose & Nabanita Ghosh, 2025. "Digital financial literacy and financial inclusion in the global south for a sustainable future: A scoping review," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 52(1), pages 129-148, March.
    9. Chen, Han & Wu, Linsheng, 2024. "Manager's entrepreneurial experience and firm innovation," Finance Research Letters, Elsevier, vol. 66(C).
    10. Kodongo, Odongo, 2024. "Financial inclusion effects of engaging with the fintech ecosystem," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    11. Han, Baohua & Liu, Chao & Ling, Wenhao, 2025. "Impact of financial literacy and awareness of children's pension responsibilities on the willingness to purchase pension insurance: Evidence based on survey data (CLASS)," Finance Research Letters, Elsevier, vol. 76(C).
    12. Cheng, Yawen & Sheng, Yan, 2023. "Relative income within households, gender identity, and entrepreneurship," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 90-108.
    13. Zhang, Qian & Guo, Lian & Chen, Diqiang & Lei, Shini, 2025. "Does mobile access to the internet increase household financial literacy?," International Review of Financial Analysis, Elsevier, vol. 98(C).
    14. Verma, Rahul & Chatterjee, Devlina, 2025. "Relative impact of digital and traditional financial inclusion on financial resilience: Evidence from 13 emerging countries," Journal of Economics and Business, Elsevier, vol. 133(C).
    15. Liu, Kaiwei & Tan, Cunfeng, 2024. "The impact of fiscal support on individual entrepreneurship in rural areas," Finance Research Letters, Elsevier, vol. 66(C).
    16. Shi, Daojin & Chen, Lunsong & Wang, Xiaoli & Xu, Xiuying & Yang, Lixia, 2022. "Rural venture investments with credits mortgaged on farmer's forests—A case study of Zhejiang, China," Forest Policy and Economics, Elsevier, vol. 143(C).
    17. Chen, Zhuo & Zhang, Jialu & Liu, Xiawei, 2025. "Encouraging entrepreneurship through digital inclusive finance," Finance Research Letters, Elsevier, vol. 74(C).
    18. Yang, Ming & Peng, HuaTao & Yue, Shunli, 2025. "How returning home for entrepreneurship affects rural common prosperity," International Review of Economics & Finance, Elsevier, vol. 98(C).
    19. D'Alberto, R. & Targetti, S. & Schaller, L. & Bartolini, F. & Eichhorn, T. & Haltia, E. & Harmanny, K. & Le Gloux, F. & Nikolov, D. & Runge, T. & Vergamini, D. & Viaggi, D., 2024. "A European perspective on acceptability of innovative agri-environment-climate contract solutions," Land Use Policy, Elsevier, vol. 141(C).
    20. Aman, Hiroyuki & Motonishi, Taizo & Ogawa, Kazuhito & Omori, Kozo, 2024. "The effect of financial literacy on long-term recognition and short-term trade in mutual funds: Evidence from Japan," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 762-783.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612324017331. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.