The Influence Of Social Interaction On The Selection Of Household Financial Assets Of Chinese Residents

The complexity of social operation and financial transaction poses an important challenge to the "rational man" hypothesis of neoclassical finance.The behavioral characteristics of people in social networks have an important influence on financial investment.Behavioral finance organically integrates finance,psychology and society.Studies and other disciplines pay more attention to the impact of individual behavioral characteristics on financial investment.Campbell(2006)pioneered the concept of household finance and explored the impact of individual behavioral characteristics on household financial asset selection.China has always been known as the “state of etiquette”.The ritual exchanges and humanity are the epitome of traditional Chinese culture.People need to express their inner feelings and friendly exchanges with others through appropriate interactive forms,especially in intelligence and information.Today,the emergence of various communication tools and social software has broken the traditional small circle of people.People can quickly get in touch and transmit information at any time and anywhere,and social interactions become more frequent and profound.With the continuous improvement of people's living standards,the consumption of human beings caused by social interaction is also rising.Social expenditures have become an important part of China's family living expenses,affecting the lives of residents.At the same time,social interaction is an important medium for information transmission between the masses.It also plays its unique role.Through the acquisition and processing of information,the perception of residents will change,and the vision of the problem will be more comprehensive.In the face of changes in the efficiency of asset selection and allocation,financial participation has also been greatly promoted.It can be seen from the existing research literature that social interaction affects the allocation on household assets through various mechanisms,especially the distribution of household financial assets,and incloud such as access to information mechanisms,exchange of feelings,and social norms Direct impact mechanisms.But the reality tells us that because individuals are heterogeneous,residents who perform the same or similar social activities may have different responses after obtaining the same information,and the allocation of financial assets is also very different.Then,how does social interaction interact? The choice of family financial assets? Is there an indirect impact effect caused by certain mediation variables in the process of influence? This is the research purpose and main research content of this paper.This paper uses the questionnaire database of the China Family Finance Research and Research Center(CHFS)to find representative variables that can represent social interactions by looking up the data for 2011 and 2013.In the selection of family financial assets,this paper mainly considers three major sectors: financial products,savings deposits and commercial insurance.In view of the fact that social interactions can affect the financial attitudes of individual investors or groups,and risk attitudes will significantly affect household financial asset selection,the article uses risk attitude as a mediator variable,establishes Probit model and mediation effect model to explore the direct and indirect influence of Social interaction on the allocation of household financial assets in China.The empirical results of the article show that social interactions can significantly affect the family's participation rate in financial products,savings deposits,and commercial insurance.The increase in transfer income and expenditure and the increase in communication costs are all contributing to the participation of household finance.The number of immediate family members is the opposite.At the same time,in addition to the direct influence,the risk attitude as a mediator variable also passes the significance test of each mediation effect equation model to ensure the existence of indirect mediation effect,indicating that risk attitude as a mediator variable participates in social interaction.A new direction of thinking has been added for the study of family finance.At the same time,the paper also explores the influence of some other factors,such as the expenditure of health care products consumption,the improvement of education level will promote the allocation of financial assets to investors,and promote the investment of residents in savings,stock market,insurance,etc.When residents acquire certain financial-related educational knowledge,the promotion is significantly improved.