Moderating Effect of Access to Capital on the Relationship between Financial Literacy and Firm Survival

Financial literacy and access to finance are classically modeled as independent antecedents of firm survival. Though, the margin conditions for such models are relatively un-examine in the context of emerging economies, where financial literacy has been contended to be very poor. Therefore, drawing perspectives from RBT, this study observed the moderating effects of access to capital on the relationship between financial literacy and firm survival of owners/managers firms operating in Nigerian business environment. Adopting quantitative research approach, the study sampled 302 owners/managers firms. The data collected were analyzed through the aid of OLS. The findings revealed that financial literacy improves firm survival and specifically so when owners/managers have adequate financial access. Similarly the result shows strong positive relationship between financial literacy and firm survival. Therefore, its recommends that owners/managers should take more complex assessment to understand how financial access and financial literacy influenced firm survival.