Research On The Impact Of Internet On Family Financial Investment Participation And Profitability

In recent years,with the rapid development of China's economy,micro-level household asset allocation has also experienced a significant change.The investment methods and the way to realize the preservation and appreciation of assets have attracted wide attention from scholars.In this subject,whether the family participates in risk market,the degree of participation in the risk market,and the factors affecting the profit level are the focus of the study.There are many factors affecting the way family participate risk investment,at the same time,there are a lot of empirical studies all around the world show that demographic characteristics,residents' wealth and psychological factors have significant influences on them.The main influence factor on family participates in risk market this paper choose is the use of the Internet.Risk financial assets such as stocks and funds have thresholds for entry.On the one hand,capital and information costs required to invest in risky assets are high,on the other hand,investors are required to have higher knowledge reserves and financial literacy.The continuous popularization of the Internet,the optimization of search engines,and the portable use of computer phones have all contributed to the reduction of information costs and the improvement of social interactions,thereby increasing the participation of family risk markets.This article uses two indicators to measure the use of the Internet,one is whether to use the Internet,and the other is the intensity of the Internet(measured by the length of the amateur time use on Internet).There are three aspects respectively show how the Internet usage influence the household venture investment,whether the family participates in venture capital,the degree of participation of family venture capital(ie,the ratio of risk assets to total financial assets),and the profitability of family participation in venture capital.In the specific study,this paper uses the China Family Tracking Survey(CFPS)data to analyze the Internet usage and whether the family participates in venture capital,family venture capital participation,and family venture investment profitability.It is concluded that compared to the households which do not use the Internet,the proportion of households participating in venture capital in households using the Internet is much larger,at the same time,as the intensity of Internet use increases,the proportion of households participating in venture capital is gradually increasing;Among the households using the Internet,the proportion of households with median and low-level participation is more.In households that do not use the Internet,the proportion of households with high to low participation levels is similar.And with the increase of use intensity,the households with low risk investment participation are not changed obviously.The proportion of households with median degree is gradually increasing,and the proportion of households with high participation is U-shaped.In households that do not use the Internet,the proportion of households that make a profit is slightly larger.With the increase in the intensity of Internet use,the proportion of households that make a profit by investment is "hump" type,which increases first and then decreases,reaching at medium and high intensity.Then,according to the domestic and foreign literatures,other factors affecting family risk investment were summarized,and the factors and family risk investment were statistically analyzed.In order to make a further study on the impact of Internet usage on family risk financial investment,this paper uses the econometric model for empirical analysis.The explanatory variables are set to the extent to which the family participates in risk financial investment,the degree of family participation in risk financial investmen(ie,the ratio of risk assets to total financial assets),and the profitability of family participation in risk financial investment.At the same time,Internet usage is used as an explanatory variable for key research,and the age,gender,education level,family size,marital status,health level,income level,holding status of the property,and social interaction level of the family finance supervisor are selected as other controled variables.The first step,use the Probit model to explore the impact of Internet usage on whether households participate in risky financial investments.Second,use the Tobit model to explore the impact of Internet usage on the level of involvement of family risk financial investments.Finally,after determining that there is no sample bias,the Probit model is used to explore the impact of Internet usage on the profitability of family risk financial investments.Internet use has a significant positive impact on the likelihood and participation of family risk financial investment;it has a significant negative impact on the profit and loss of family risk financial investment.That is:households using the Internet and using the Internet with higher intensity are more likely to participate in venture financial investment than households that do not use the Internet and use low-intensity,and are willing to take a higher proportion of financial assets for venture financial investment.The degree is deeper.At the same time,households that do not use the Internet and use low intensity are more likely to make a profit in risky financial investments than households that use the Internet and use more intensity.In order to overcome the potential endogenous problems of Internet use,the average Internet access ratio at the district and county level is used as the instrumental variable of the Internet,and the average online time of the district and county level is used as the instrumental variable of the Internet use intensity.The estimated conclusions are consistent.Finally,based on the empirical results of this paper,the government and investors were proposed separately.