Table 3 Definition of variables.
From: Knowledge creates value: the role of financial literacy in entrepreneurial behavior
Variable type | Variable | Definition |
|---|---|---|
Explanatory variables | Literacy1 | The number of correct answers to the financial question. |
Literacy2 | The factors with an eigenvalue greater than one in factor analysis. | |
Explained variable | Entrepre1 | It is a dummy variable and represents the entrepreneurial behavior of households. If the household is engaged in a self-employed business operation, it equals one; otherwise, zero. |
Entrepre2 | It is a dummy variable and represents the initiative entrepreneurship of households. If the reason for the household’s participation in entrepreneurship is “want to be the boss”, “earn more”, and “want to be more flexible and free”, it is equal to one; otherwise, zero. | |
Entrepre1* | The changes in entrepreneurial behavior of households during 2015–2017. If the value of Entrepre1 is one in 2017 minus 2015. It has three values which are −1, 0, and 1. | |
Entrepre2* | The changes in initiative entrepreneurship of household during 2015–2017. If the value of Entrepre2 is one in 2017 minus 2015. It has three values which are −1, 0, and 1. | |
Control variable | Age | We used 2015 minus the year of birth of the head of household. |
Age2 | To avoid multicollinearity, we use a variable that is the square of age. | |
Gender | If the head of the household is male, the value is one, otherwise, zero. | |
Education | The actual education level of the respondents. Specifically, no school is assigned a value of 1, elementary schools are assigned a value of 2, junior high schools are assigned a value of 3, high schools are assigned a value of 4, technical secondary school/vocational high schools are assigned a value of 5, college/vocational high school are assigned a value of 6, undergraduate is assigned a value of 7, master’s degree is assigned a value of 8, and a doctoral degree is assigned a value of 9. | |
Marriage | If the household head’s marital status is married or living together, the value is one; otherwise, zero. | |
Health | If the head of the household’s health status is “good”, the value is one; otherwise, zero. | |
RL | If the respondent chooses “high-risk, high-return projects; or “slightly higher-risk, slightly higher-return projects”, the respondent is considered to be risk-preferred, and the variable is assigned a value of one, otherwise, zero. | |
RN | If the respondent chooses the “average risk, average return project”, it is considered risk-neutral and assigns a value of one, otherwise, zero. | |
RA | If the respondent chooses “slightly lower risk, slightly lower return project, or “unwilling to take any risk”, the respondent is considered to be risk-averse, and the variable is assigned a value of one, otherwise, zero. | |
CPC | If at least one of the interviewee’s parents is a member of the Communist Party of China, the value is one; otherwise, zero. | |
FS | The total population of the family. | |
House | One Means the respondent owns the property right of the house, otherwise, zero. | |
NC | The number of family members younger than 16 years old. | |
NE | The number of members in the family who are older than 60 years old. | |
NU | The number of members in the family whose health status is “average” or even worse. | |
Asset | Natural logarithm of total household assets. | |
Mechanism analysis | Income | Natural logarithm of total household income in 2015. |
Rank | If the total household income is in the top 50% of the sample household’s total income, assign a value of one, otherwise, zero. | |
Expenditure | Natural logarithm of the family’s cash and non-cash expenditures during the Spring Festival, other holidays, weddings and funerals in 2015. | |
Revenue | Natural logarithm of the family’s cash and non-cash revenues during the Spring Festival, other holidays, weddings, and funerals in 2015. | |
Sum | Natural logarithm of the sum of Revenue and Expenditure in 2015. | |
Risk | If the respondent chooses RL, the variable is assigned a value of 3; chooses RN, the variable is assigned a value of 2; chooses RA, the respondent is considered to be risk-averse, and the variable is assigned a value of 1. |
