The impact Financial literacy of company managers on work place effectiveness and profitability

Document Type : Original Article

Author
Ahmad feizizadeh
Department of Commerce, Azad Islamic University, Tehran, Iran
10.22034/jik.2026.24447
Abstract
Abstract
In the qualitative stage of the study, the components of managers' financial literacy have been identified using phenomenological method and after being verified and weighted, the managers' financial literacy questionnaire was codified and approved by the experts. Then, in the quantitative stage of the research, using cluster sampling method, the questionnaires were distributed among 229 managing directors and members of the board of directors of the selected companies and the collected data was analyzed using appropriate statistical techniques.
The findings of the qualitative section indicates that the components of the managers' specialized financial literacy include analysis and identification of the financial statements, familiarity with the rules of insurance, labor , taxation, banking, cheque , money laundering, export and import and capital market. The results of testing hypotheses in the quantitative section also indicate inefficiency of managers' financial literacy in the general and private financial literacy domains. Some factors including educations, management record, the size of the company and passing financial courses may influence the managers' financial literacy.
The results showed that the managers lack sufficient financial literacy especially in the specialized domains and they are required to appropriately increase their financial skills in the specialized domain.
The present study has presented an appropriate instrument for evaluation of the managers' financial literacy with a qualitative phenomenological approach for the first time in Iran and this may be a starting point for performing new studies in this domain.
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