Social Capital And Household Financial Market Participation

With the increasing of household financial transaction activities,the impact of financial assets on the dynamic distribution of household wealth has become increasingly prominent.Therefore,it is necessary to study the choice of family assets.This paper studies the influence of family assets selection behavior from the perspective of urban and rural family social capital.According to the data of China Household Finance Survey(CHFS).Firstly,this paper analyzes the mechanism of the influence of social capital on the financial market participation of urban and rural households.The impact of social capital on the participation of urban and rural households in financial market and the depth of financial market participation.Then,based on the Multivariate Decomposition Method and extended Blinder-Oaxaca method,this paper analysis portfolio choice differences between our urban and rural household.The main conclusions of this paper are: First,social capital is one of the important ways to promote urban and rural households participating in the financial market is to raise the possibility of household borrowing,making it more convenient to obtain financial opportunities in private financial markets,so as to provide financial support for their participation in the financial market.Second,social capital broaden the sources of investment information,improve the quality,accuracy and timeliness of access to information;social capital provide investors emotional support and spiritual support;the "mortgage" function of social capital,so as to solve the financial problems of investors to provide financial support.Social capital promotes China's urban and rural households to participate in the financial market and hold a higher ratio of risk assets.The promotion effect of social capital on rural households' participation in financial market is higher than that of rural households.The promotion effect of social capital on rural households with higher ratio of risky assets was significantly higher than that of urban households.Third,the differences of urban and rural family endowment characteristics have a great contribution to thedifference of the financial market participation rate of urban and rural households.However,the difference of social capital between urban and rural households in China is one of the main reasons for the difference in the participation rate of urban and rural households' financial market.In addition,the family income and the number of years of education,age and family differences in the head of the household,and the difference of endowment rate are the main factors that cause the difference of the family financial market participation rate.At the same time,China's urban and rural household head of the ability of self identity,family financial availability,the degree of symmetry of financial information are also caused by urban and rural households in China's financial market participation rate of the unobserved factors.The distribution characteristics of different rural family property in China town is the main cause of family financial market in urban and rural areas in China in different depth,and the rural families in the choice of risky asset holding have more advantage.