The objective of this review article is to show the concepts and significance of financial literacy and how it can contribute to improving socio economic wellbeing, financial sector development, poverty reduction and sustainable growth in developing countries in Africa. The review covered recent literatures on financial literacy; both theoretical and empirical. The review showed that level of financial literacy is low both in developed and developing countries, but policy and academic response in developing countries in general and Africa in particular is at low level. The results of limited empirical studies implemented to evaluate financial education programs, including those in few African countries, showed that enhancing financial literacy and personal financial decision making capabilities of people would enhance the outcome of financial inclusion and other poverty reduction initiatives for the fact financially literate people can demand and properly use beneficial financial services such as savings, microcredit, insurance. Moreover, enhancing financial literacy is at the advantage of financial service providers and contributes to the development of a stable financial system, a sustainable economic growth. Thus, policy makers and academics in African developing countries need to understand the level of financial literacy in the population in order to devise suitable financial education and other related policy interventions to improve personal financial literacy for its benefits of enhancing individual socio economic welfare and building an inclusive financial system and sustainable economic growth.
The present study is an attempt to ascertain the determinants of profitability of automobile industry in India by taking a sample of all the automobile firms covering various segments of automobile industry in India viz. commercial vehicles, three wheelers, two wheelers, and passenger vehicles which are listed on Bombay Stock Exchange (BSE), for a period of eleven years from 2003-04 to 2013-14. In order to achieve the objectives of the study, firm-specific factors viz. financial leverage, size of firm, tangibility of assets, growth of firm, liquidity, inventory turnover ratio, debt equity ratio, debtors turnover ratio, total assets turnover ratio, average payment period, and cash liquidity of firm are regressed against return on assets ratio. Firstly correlation analysis and multiple regression analysis are applied to identify the factors affecting profitability of sample firms. Further, to find out the prominent factors that account for the variation in profitability of sample firms, step-wise regression analysis has been carried out. It was found that profitability of automobile industry in India is significantly influenced by the liquidity position of firm, growth of firm, inventory turnover ratio, debt equity ratio, and average payment period.
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