Analysis of the efficiency of financial knowledge level on financial failure: an application on SMEs managers in Erzincan

Globalised and flourishing markets are accompanied by intense competitive conditions for firms. With this competitive environment, the firms that aren't able to present efficient financial administration run the risk of facing financial failures. Financial failure has a wide variety of causes either because of financial-induced or not because of financial-induced. When today's markets are taken into account, financial ones come to the forefront. In this study, financial factors are addressed that lead to financial failure. With this purpose, in order to determine the impact of financial knowledge level on success of firms, the study has been carried out on SME's in Erzincan. The financial statements of the firms between the years 2014 and 2017 were utilized in order to determine the failures of the firms subject to the research. According to the results, SMEs were divided into groups according to financial failure cases and each group was analyzed separately. According to the results obtained, SMEs were divided into groups according to financial failure cases and each group was analyzed separately. In order to determine the level of financial knowledge in the survey, questionnaires were applied to the managers of the firms in question. Hypotheses developed for the purposes of the research were tested with the Random Effects Model using Resistant Failures. According to the results of the analysis, it is determined that there is a significant relationship between firm success and financial knowledge level. Key Words: Financial Success, Financial Knowledge Level, SME