Linking access to finance and governance structure with financial performance of biotechnology firms: the mediation of financial literacy

Lisa Gabriele
The Novo Nordisk Foundation Center for Biosustainability, Technical University of Denmark, Kongens Lyngby, Denmark
Valeria David
Laboratory of Thermodynamics, TU Dortmund University, Dortmund, Germany

DOI:https://doi.org/10.5912/jcb2128

Abstract:

The research aims to link the access to finance with governance structure and the mediation of financial literacy has been investigated in this regard. The access to finance is crucial in maintaining equilibrium among investment opportunities. The governance structure is also of equal importance. Financial literacy plays a part in efficient use of financial resources as well. When management is financially literate it makes efficient financial strategic decisions and effectively use the financial resources for innovation and important activities efficiently. To conduct the research, the quantitative-based research design has been used. The formulated hypothesis was tested through the SPSS. Results declared a significant association between the impact of access to finance and governance structure on the financial performance of biotechnology firms of Germany. The moderation of financial literacy has been declared as insignificant. The research holds greater theoretical and practical significance. To enhance generalizability of the research both have been elaborated as it increases growing body of literature regarding effective financial decisions.