Study on the Impact of Digital Finance on Risky Financial Asset Allocation of Chinese Households

DOI: https://doi.org/10.62517/jse.202411301

Author(s)

Menghao Liu1, Yangbin Zhang2

Affiliation(s)

1School of Finance and Economics, Hunan University of Business and Technology, Changsha, Hunan, China 2 International Business School, Hunan University of Business and Technology, Changsha, Hunan, China

Abstract

In recent years, the wealth of Chinese households has increased rapidly, and the demand for preserving and appreciating household assets has grown. However, the asset allocation structure of Chinese households remains relatively singular, with the majority of assets concentrated in real estate, which increases systemic risk and is unfavorable for financial support to the development of the real economy. Therefore, this paper constructs indicators for household risky financial asset allocation and household digital finance. Then, using Probit model, Tobit model, and ordered Probit model respectively, starting from a micro perspective, it investigates the impact of digital finance on household risky financial asset allocation. This comprehensive examination is conducted by incorporating instrumental variables for endogeneity testing, utilizing the mechanism of intermediary effects, and finally drawing corresponding conclusions.

Keywords

Digital Finance; Household Risky Financial Asset Allocation; Empirical Study; Mechanism Analysis

References

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